Istithmar raises stake in SpiceJet to US$50 million

Earlier this year, Istithmar invested US$12.5 million in SpiceJet. The stake rise comes through SpiceJet's recent issue of Foreign currency Convertible Bonds (FCCB).

Istithmar's investment in SpiceJet, its first in India, reflects the group's long term plans in the burgeoning aviation industry in India. The investment is in line with the group's strategy of identifying projects with a strong potential for growth and success.

In his comments, Sultan Ahmed Bin Sulayem, Executive Chairman of Istithmar said: "We see immense potential in the Indian aviation sector. Istithmar is extremely bullish on low cost carriers in India with the current spate of reforms and the gradual shift to a more open skies policy. In addition to such encouraging legislative factors, the economy is embarking on a steady path of long term growth and we see an opportunity for Istithmar to play a pivotal role in the development process."

He added,

"SpiceJet's mission is to become India's preferred low-cost airline, delivering the lowest air fares with the highest consumer value, to price sensitive consumers and we see our interest in SpiceJet as a long-term strategic investment."

Istithmar is a major investment house based in the UAE focusing on private equity, real estate, and alternative investments. Istithmar was launched by The Corporate Office and The Ports, Customs and Free Zone Corporation (PCFC) with an investment program of Dh7.3 billion (US$2 billion). Its affiliate companies include Nakheel (a leading real-estate development company), Dubai Metals and Commodities Centre and Tejari (an online procurement company).

Istithmar's 'I' investment philosophy, based around three core principles -- Ideas, Inquiry & Integrity -- sets the foundation for the firm which has a broad portfolio of highly successful companies in markets from North America to Asia to the Middle East. Currently the firm focuses its activities in four industry verticals - Consumer, Financial Services, Industrial and Real Estate.

SpiceJet which has increasingly become the carrier of choice amongst the price sensitive consumers has teamed with some of the best names in the avaiation industry in delivering it services. KLM is providing maintenance support by with technical expertise being officered by Star Navigation, Russel Adams and Tech Log This has ensured the airlines high standards of safety, reliability or on-time travel. The company has tied up with Navitaire the world's renowned low-cost support for reservations and revenue management.