Spicejet completes US $ 1. 1 billion financing of its expansion plans

Spicejet Ltd has announced that the Company and Babcock & Brown Aircraft Management (BBAM) along with its long-term strategic partner Nomura Babcock & Brown Co Ltd (NBB) announced the signing of a sale and lease back agreement covering sixteen brand-new Boeing 737-800/-900ER aircraft valued at over US$ 1.1 billion based on the manufacturer´s list prices. The aircraft will be delivered over approximately 22 months beginning in January 2007. Earlier in the year, the Company completed a similar financing with BBAM for its first four B737-800 aircraft deliveries. Together with the today´s announcement, the Company has now completed the financing of its first twenty aircraft orders for Boeing 737-800/-900ER aircraft.

The Company´s Chairman, Siddhanta Sharma termed the deal as ´landmark in the history of company´s evolution´ and said "BBAM and Nomura are one of the world´s top aircraft financiers and their faith in Spicejet makes us proud. The newly acquired capacity will go a long way to augment our network in the country and would greatly assist us in fulfilling our vision of being India´s most preferred Low Cost Carrier."

Source : Equity Bulls

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