SpiceJet raises $ 80 million through FCCBs
Indian aviation market is booming with many budget airline players entering with attractive offers and schemes. SpiceJet is one of these airline companies, which is trying to get the attention of travelers. The company has just announced that they have managed to raise around $80 million by way of foreign currency convertible bonds (FCCBs) in the international market.
The company requires the finance to meet its capital expenditure plan for acquiring aircraft. These FCCBs would be listed on the Luxembourg Stock Exchange and would have a maturity period of over five years. SpiceJet has also informed the Bombay Stock Exchange of this latest update.
The board of the SpiceJet airlines issued these bonds during a meeting yesterday and these FCCBs are convertible into equity shares of the company at a price of Rs 90 per share, at the option of bondholder. The company plans to use the funds raised from this issue to part-finance the fleet expansion plans. They had recently placed an order for around 20 Boeing 737-800 aircrafts.
Ajay Singh, Director, SpiceJet said in a statement: “The Bond issue will further strengthen the financial position of SpiceJet.”