Jet Airways Ltd shares surged 4.8% to 255 rupees, their highest in over a month, following reports of a 20.50 billion rupees ($293.07 million) loan from Punjab National Bank (PNB), according to Indian daily Mint.
The airline secured 11 billion rupees in foreign currency term loans and a 9.50 billion rupees non-fund based credit facility from PNB, as per reviewed loan documents.
Neither Jet Airways nor PNB immediately commented on the report.
The credit facility, intended for working capital, will primarily cover aircraft rental payments and unpaid salaries, according to a source cited by Mint.
Jet Airways recently grounded three more aircraft due to payment defaults, bringing the total to 28, though specific lessors were not named.
Mint reported that Jet Airways has the option to sell up to 2.50 billion rupees of the term loan to other investors.
