British Airways has acquired commitments for a five-year term-loan Export Improvement Assure Facility of £2 billion.
The funds are underwritten by a syndicate of banks, partially assured by UK Export Finance (UKEF).
The service mentioned 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 offers the assure to help 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 accommodates some non-financial covenants, together with restrictions on dividend funds by the airline to proprietor Worldwide Airways Group.
The proceeds from the UKEF facility might be used to reinforce liquidity and supply British Airways with the operational and strategic flexibility to reap the benefits of a partial restoration in demand for air journey in 2021 as Covid-19 vaccines are distributed worldwide.
IAG continues to have robust liquidity with money and undrawn services of €eight billion as at November 30th, excluding the UKEF facility.
Along with the UKEF facility, the group mentioned it was exploring different debt initiatives to enhance additional its liquidity and can replace the market sooner or later.
