Abu Dhabi's Etihad prepares group-level bond sale

Etihad is set to offer its second major group-level bond issue.

The business, which raised an initial US$700m with a five-year bond issue last September, is about to announce another round of fundraising over the next few days.

Speaking at a global Alitalia event in Rome, the group chief executive James Hogan said the bond sale had been launched earlier this week, and that more details, including its value, should be made available “within the next 24 hours”.

Asked how the money would be used, he said: “It’s a range of things across the airlines, from capex to repaying loans”.

Mr Hogan said that Etihad and its partner airlines now had combined revenue of $25 billion.

It also has 716 aircraft, 72,360 employees and carried more than 111 million passengers to 349 destinations.

“That gives us the ability to negotiate hard with our sup­pliers,” said Mr Hogan. “Already, we’re negotiating as one with procurement. We’re integrating our networks and combining our backroom operations.”

Earlier this week, Bloomberg reported that a funding vehicle known as EA Partners II had been set up to raise debt, and that Goldman Sachs International, ADS Securities, Anoa Capital and Integrated Capital had been set up as joint lead managers.


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