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Jet Airways refinances USD405m in debt

3-Nov-2010 10:51 AM

Jet Airways reportedly refinanced INR1800 crore (USD404.7 million) of debt into dollar-denominated loans as part of efforts to reduce its annual interest costs (Business Standard/Live Mint, 02-Nov-2010). The conversion is for the current financial year. Jet Airways VP for Commercial Strategy and Investor Relations, KG Vishwanath, stated the move will reduce Jet's interest burden by USD15 million (INR66 crore) p/a. As of 30-Sep-2010, the carrier had debts of INR13,700 crore (USD3 billion) with cash reserves at INR760 crore (USD171.2 million). The carrier will also raise funds through the development of land it owns. As part of this, the carrier will receive up to USD124 million in payments from Godrej Properties which will develop the carrier's 1.47 acre site in the Bandra-Kurla Complex. The carrier will also sell at least 20 aircraft through a sale-and-lease back transaction. According to Mr Vishwanath, each transaction will raise USD7-8 million for the carrier.