IAG said on Monday that British Airways has agreed a £1bn five-year credit facility.
International Consolidated Airlines Group SA (CDI)
01 November 2021 13:07:45
Source: Sharecast
The airline agreed the credit facility with UK Export Finance and a syndicate of banks. This is in addition to a £2bn UKEF guaranteed facility that was announced in December 2020 and drawn in March 2021.
British Airways plans to draw down only if and when required and the facility will not be utilised upon signing, IAG said.
"Similar to the previous facility, British Airways is entitled to repay any drawn loan at any time on notice and there are similar non-financial covenants, including restrictions on dividend payments to IAG," it said, adding that both facilities have similar sustainability-linked features.
At the end of September, IAG's total liquidity was €10.6bn and the company, which also owns Iberia and Aer Lingus, said the new facility "further bolsters liquidity".
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