24th Jul 2020 16:03
(Alliance News) - International Consolidated Airlines Group SA on Friday did not rule out an equity raise and said it is "evaluating the merits" of a EUR2.75 billion rights issue.
The British Airways Owner said it noted media speculation over the possibility that it may undertake an equity raise.
"As detailed in its first-quarter financial results announcement on May 7, going into the crisis IAG had a strong balance sheet and liquidity with cash and undrawn facilities at April 30 of EUR10 billion," IAG said.
IAG added: "The group is evaluating the merits of a rights issue of up to EUR2.75 billion that would further strengthen IAG's balance sheet. No decision has been made as to whether or when to proceed with a rights issue."
Earlier on Friday its said it renewed its commercial partnership with American Express Co. The multi-year worldwide commercial partnership will see American Express pay GBP750 million to IAG Loyalty, an IAG subsidiary, of which a significant proportion is a pre-purchase of Avios points.
IAG shares were 4.0% lower at 200.20 pence each in London on Friday afternoon.
By Eric Cunha; [email protected]
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