Friday, September 11, 2015
Etihad Airways is to launch a series of road shows with potential investors in a US $1 billion bond issue it is planning in partnership with a group of airlines, including Air Serbia. The meetings will be held in London and the Middle East over the next few days, organised by the US investment bank Goldman Sachs and two boutique advisers, ADS Securities of the UAE and United Kingdom-based Anoa Capital. Goldman said in a “mandate announcement” that the issue would be made through a funding vehicle, EA Partners1 BV, set up by Etihad and five airlines in which it has equity investments. The five are Air Serbia, Alitalia, Air Berlin, Air Seychelles and Jet Airways. A series of fixed income investor meetings would follow, Goldman said. The airline has stressed the group nature of the bond issue, its first venture into the fixed-income debt markets alongside the other airlines. Some of the proceeds are to be used by the equity partners. The rest will go towards Etihad’s expansion plans. The credit rating agency Fitch this year gave Etihad its first A rating, reflecting its “extensive network, strong market position, favourable geographic hub location poised for growth and cost advantage”. Etihad said it had raised more than $11 billion in long-term funding from the global financial markets since 2003, including $3.7 billion last year to finance its debt.
Etihad got its A ranking just because their government is ready to throw money at them making bankruptcy impossible.
ReplyDeleteYeah, and ???
ReplyDeleteIt's distorting the market and it negatively affects all those airlines who can not rely on government aid.
Deletei think the ratings agencies know more about this than do you or i .... Nothing wrong with the shareholder providing a guarantee - whoever that shareholder may be .... not their fault that the govt of Abu Dhabi owns 100% of etihad. Besides, there are 5 other airlines who are part of this consortia, who have all no doubt had to jump through hoops to satisfy the rigours of goldman sachs and other institutions ....
DeleteHAHAHAHHAAH we all know that these ratings are nothing more and nothing less than political tools.
DeleteFurthermore, if Etihad and it's puppets want to operate in Europe then they have to give up on relying on government aid, something EY obviously can't live without... as was proven by the massive cash injection they got.
At the end of the day we know that EY is obsessed with stepping out of EK's shadow.
Dude ...you have been smokin' way too much of that stuff .... give it up Bro' ....
DeleteWhat a great argument on your behalf... not.
Delete