CEBU AIR, Inc., the publicly traded operator of budget carrier Cebu Pacific, reported on Monday that it had reached an agreement with International Finance Corp., IFC Emerging Asia Fund, and Indigo Philippines LLC to acquire a $250 million convertible bond investment.

Cebu Air stated in a stock exchange filing that the deal was signed on April 16 after the company’s board of directors approved it.

“Transaction closure is contingent on the parties completing post-signing deliverables in the coming weeks,” it said.

The convertible bonds’ underlying securities are 318.75 million common shares with a conversion price of P38, according to the company.

The World Bank Group has the International Finance Corporation. According to Cebu Air, it is the world’s largest development agency centered exclusively on the private sector in developing countries.

Meanwhile, the IFC Emerging Asia Fund is a $693 million private equity fund run by the International Finance Corp’s IFC Asset Management Company (IFC).

Indigo Partners LLC is a private equity company based in the United States that invests in aviation.

Frontier Airlines in the United States, Volaris in Mexico, Wizz Air in Europe, and JetSMART in Chile are among Indigo Partners’ current aviation investments.

Cebu Air received nearly P12.5 billion from a stock rights sale in March, which it planned to use to boost its balance sheet.

In the same month, the company’s board of directors accepted a P16 billion, 10-year loan from local banks to finance capital spending and other general corporate purposes.

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