British Airways secures £2bn in export growth loans | Information

British Airways secures £2bn in export development loans | News

British Airways has acquired commitments for a five-year term-loan Export Growth Assure Facility of £2 billion.

The funds are underwritten by a syndicate of banks, partially assured by UK Export Finance (UKEF).

The service stated it expects to drawdown the ability in January topic to settlement of ultimate phrases with the lenders and UKEF.

UKEF is the export credit score company and supplies the assure to assist the working capital and capital expenditure wants of UK exporters that meet sure standards.

British Airways is entitled to repay the mortgage at any time on discover.

The association comprises some non-financial covenants, together with restrictions on dividend funds by the airline to proprietor Worldwide Airways Group.

The proceeds from the UKEF facility can be used to boost liquidity and supply British Airways with the operational and strategic flexibility to benefit from a partial restoration in demand for air journey in 2021 as Covid-19 vaccines are distributed worldwide.

IAG continues to have sturdy liquidity with money and undrawn services of €eight billion as at November 30th, excluding the UKEF facility.

Along with the UKEF facility, the group stated it was exploring different debt initiatives to enhance additional its liquidity and can replace the market in the end.

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