Jet Airways secures $293 mn loan from PNB – Mint

A Jet Airways passenger aircraft takes-off from the airport in Ahmedabad

Shares of Jet AirwaysNSE 1.71 % rose as much as 4.8 per cent to Rs 255, the highest in over a month after a report said the debt-laden carrier has secured a loan of Rs 2,050 crore ($293.07 million) from Punjab National BankNSE 2.45 %.

The airline has raised foreign currency term loans worth Rs 1,100 crore and a non-fund based credit facility of Rs 950 crore from Punjab National Bank (PNB), according to copies of loan documents reviewed by Indian daily 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 Rs 250 crore of the term loan to other investors, Mint added.

[“source=economictimes.indiatimes”]