SpiceJet to issue FCCBs aggregating $80 million

06 Dec 2005

SpiceJet Ltd has issued and allotted foreign currency convertible bonds (FCCBs) aggregating to $80 million in the international market. The proceeds will e used for meeting its capital expenditure plan of acquiring aircraft. The FCCBs will be listed at Luxembourg Stock Exchange.

The FCCBs have a maturity period of over five years and are convertible into equity shares of the company at a conversion price of Rs90 per share, at the option of bondholder.

SpiceJet, formerly ModiLuft, is owned by Royal Airways. It commenced services with three second-hand leased Boeing 737-800 aircraft. in May 2005.

Earlier in February, the airline had placed an order with Boeing to supply 10 737-800 passenger jets with an option for another 10 subsequently, at a combined estimated value of £1.26 billion at list price.