Fresh debt Rs475 crore this fiscal, says Kingfisher Airlines

Kingfisher Airlines on Thursday said it has added Rs475 crore fresh debt this fiscal since raising equity was difficult in the current market scenario.

But the airline is going ahead with plans to infuse Rs1,000 crore through various equity instruments over the next few months.
As on date, bank loans of the airline stand at Rs5,247 crore, while another Rs597 crore is pending in finance and leaseback loans, group optionally convertible debentures (OCDs) are another Rs784 crore and other miscellaneous loans add up to Rs64 crore.

Then, the OCDs pending conversion are another Rs709 crore.

Barring the OCDs pending conversion, the total loan outstanding of the airline comes to Rs6,692 crore.

Speaking to DNA, Chief Financial Officer of Kingfisher’s parent, UB Holdings, Ravi Nedungadi said when the debt recast package was approved for Kingfisher some months back, the airline had wanted to infuse only equity instead of raising total debt on its books.

“But at that time the market was not right and so we raised Rs475 crore as debt. Now, we will go ahead with fund raising as and when the market improves”.

He said the airline has already got a GDR issue approved and even filed on offer document with a foreign stock exchange and will go ahead with the offer when market conditions are conducive.
Also, in its meeting held on August 25, the board has approved a rights issue for up to Rs2,000 crore. The board also amended the terms for the issue of OCDs allotted on January 3 wherein an investor has the option to convert them into shares at a price set by the issuer.

OCDs worth over Rs700 crore had been issed by the airline to three firms acting in concert with the founders and the debentures would be redeemed prior to the rights issue.

“In the event the rights issue has not occurred during the relevant period, the OCD shall continue in accordance with their original terms, and may be redeemed at the end of 18 months from allotment,” the airline said in a stock exchange filing.

Kingfisher, which posted a net loss of Rs264 crore on higher fuel costs for the June quarter, has said it also plans to raise $250-$350 million through an issue of gross depositary receipts.