1st Nov 2021 10:52
(Alliance News) - International Consolidated Airlines Group SA on Monday said British Airways has reached agreement for a five-year export development guarantee committed credit facility of GBP1.0 billion.
The deal was agreed with UK Export Finance and a syndicate of banks, IAG said.
This is on top of a GBP2.0 billion UK Export Finance guaranteed facility that was announced in December 2020 and drawn in March 2021.
IAG highlighted that British Airways intends to draw down the new facility only "if and when required" and the facility will not be utilised upon signing.
Similar to the previous facility, IAG said 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.
At the end of September, IAG's total liquidity was at EUR10.6 billion. This facility further bolsters liquidity, the London-based airline noted.
FTSE 100-listed IAG shares were trading 2.0% higher in London on Monday at 167.06 pence each.
IAG will report its third quarter results on Friday.
By Evelina Grecenko; [email protected]
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