International Airlines Group secures further US$1.7bn in credit

International Airlines Group secures further US$1.7bn in credit

International Airlines Group has signed a revolving credit facility with a syndicate of banks as the Covid-19 pandemic enters a second year in Europe. The total amount available under the facility is US$1.755 billion; and will be available for a period of three years plus two one-year extension periods at the discretion of the lenders.

The facility is available to Aer Lingus, British Airways and Iberia; each of whom has a separate borrower limit within the overall facility.

Amounts drawn would be secured against eligible unencumbered aircraft assets; and take-off and landing rights at both London Heathrow and London Gatwick airports.

Also Read: NIS warns travellers against flouting COVID-19 safety protocols

Simultaneous with entering into this new facility, British Airways has cancelled its US dollar facility that was due to expire on June 23rd; and which had $786 million undrawn and available at December 31st last year.

As a net result, total facilities at the group have increased by nearly €400 million; and their weighted average availability period has extended by at least 1.5 years compared to previously.

IAG continues to have strong liquidity with an estimated total as of March of €10.3 billion; comprised of €7.8 billion cash, cash equivalents and interest-bearing deposits, €1.7 billion undrawn general facilities; including today’s announced facility undrawn, and €0.8 billion committed aircraft financing facilities.

About The Author

Kingsley Alaribe is a Digital Marketer with 1stNews, and writes the weekly column, Strangers and Lovers. He is also a Data Scientist. Email: [email protected]

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