Jet Airways secures $293 million loan from PNB, shares up 4.8%

Updated on Mar 11, 2019 02:33 PM IST

The airline has raised foreign currency term loans worth 11 billion rupees and a non-fund based credit facility of 9.50 billion rupees from Punjab National Bank (PNB).

The loan documents mention that Jet will use the credit facility for its working capital needs, but the money would be mainly used to pay rental dues to aircraft lessors and salary arrears.(REUTERS)
The loan documents mention that Jet will use the credit facility for its working capital needs, but the money would be mainly used to pay rental dues to aircraft lessors and salary arrears.(REUTERS)
New Delhi | ByReuters

Shares of Jet Airways Ltd rose as much as 4.8 percent to 255 rupees, the highest in over a month, after a report said the debt-laden carrier has secured a loan of 20.50 billion rupees ($293.07 million) from Punjab National Bank.

The airline has raised foreign currency term loans worth 11 billion rupees and a non-fund based credit facility of 9.50 billion rupees from Punjab National Bank (PNB), according to copies of loan documents reviewed by Mint.

Jet and PNB did not immediately respond to a request for comment.

The loan documents mention that Jet will use the credit facility for its working capital needs, but the money would be mainly used to pay rental dues to aircraft lessors and salary arrears, Mint reported, citing a source familiar with the matter.

Jet said last week another three aircraft had been grounded due to its failure to make payments, taking the total number to 28, but it has not specified the lessors involved.

The airline has an option to sell down as much as 2.50 billion rupees of the term loan to other investors, Mint added.

SHARE THIS ARTICLE ON
SHARE
Story Saved
×
Saved Articles
Following
My Reads
My Offers
Sign out
New Delhi 0C
Thursday, December 08, 2022
Start 15 Days Free Trial Subscribe Now
Register Free and get Exciting Deals