Financial Daily from THE HINDU group of publications
Wednesday, Nov 16, 2005
Financial Daily from THE HINDU group of publications Wednesday, Nov 16, 2005 |
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Airlines Kingfisher Air to raise $100 m before IPO K. Giriprakash
Bangalore, Nov. 15 KINGFISHER Air has decided to raise around $100 million to finance part of its fleet acquisition plan before it goes for an IPO. A top Kingfisher Air official told Business Line that the airline is expected to tie up funds by the end of this year. The airline has so far received around Rs 180 crore from its parent, UB Holdings. The airline has hired Caylon as its financial adviser which will float an information memorandum shortly to seek funds for this purpose. Kingfisher has so far acquired 10 of the 30 Airbus A320 aircraft. It has 10 firm and 20 options and may convert some of these options into firm orders. The Airbus A330s are due for delivery by 2007 and the A380 super jumbo is expected to be delivered in 2010, while the A350 delivery will begin in 2012. The airline's officials had earlier said Kingfisher will float an IPO within six months. "The IPO is almost certain," the official said. He said the airline plans to raise around $100 million through European export credit agency (ECA). The agency funds up to 85 per cent of the cost of the aircraft if the manufacturer is based out of Europe. Aircraft maker Airbus Industrie has the support of three European ECAs, which are COFACE of France, ECGD of the UK and Euler Hermes of Germany. ECAs are public agencies, which provide government-backed loans, guaranteed, credits and insurance to private corporations from their home country to do business abroad, particularly in the financially and politically risky developing countries.
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