Tweet
NCB to facilitate billion dollar injection to Air J
Wednesday, 02 December 2009
The cash strapped national airline Air Jamaica is to receive a much needed billion dollar capital injection.
The money, which is coming from a private placement to be arranged by NCB Capital Markets Limited, <span style="font-weight: bold">will be used to finance the airline's business plan for the remainder of the 2009/2010 fiscal year.</span>
A Ministry Paper was on Tuesday tabled in Parliament seeking approval.
It revealed that recent attempts to secure funding for Air Jamaica had encountered problems.
In June, Parliament gave approval to a Government Guarantee for US$101 million in loans from various local and overseas financial institutions.
NCB Capital Markets had committed to provide US$34.4 million in two tranches.
However, it was only able to provide $1.3 billion due to less than favourable market conditions and delays in the finalisation of the loan document.
NCB Capital was unable to provide the full commitment from its own resources and later proposed that the outstanding amount be sourced from the local market via a private placement.
Wednesday, 02 December 2009
The cash strapped national airline Air Jamaica is to receive a much needed billion dollar capital injection.
The money, which is coming from a private placement to be arranged by NCB Capital Markets Limited, <span style="font-weight: bold">will be used to finance the airline's business plan for the remainder of the 2009/2010 fiscal year.</span>
A Ministry Paper was on Tuesday tabled in Parliament seeking approval.
It revealed that recent attempts to secure funding for Air Jamaica had encountered problems.
In June, Parliament gave approval to a Government Guarantee for US$101 million in loans from various local and overseas financial institutions.
NCB Capital Markets had committed to provide US$34.4 million in two tranches.
However, it was only able to provide $1.3 billion due to less than favourable market conditions and delays in the finalisation of the loan document.
NCB Capital was unable to provide the full commitment from its own resources and later proposed that the outstanding amount be sourced from the local market via a private placement.