Cathay Pacific gets drawdown extension of $1bn loan facility
On June 8, 2021, Hong Kong flag carrier Cathay Pacific announced that the Hong Kong government agreed to extend a drawdown period of the HK$7.8 billion ($1 billion) loan facility until June 8, 2022, giving the airline more time to deal with liquidity.
The loan facility was granted to Cathay Pacific as part of the HK$39 billion ($5 billion) recapitalization announced on June 9, 2020. The move came to support the air carrier in tackling the cost problems brought by the COVID-19 pandemic.
“We have not drawn down the facility over the past 12 months as we have been adopting a suite of measures to preserve cash. We are thankful for the Government’s decision to extend the drawdown period, which provides us with more flexibility to manage our liquidity position,” Cathay Pacific CEO Augustus Tang said.
In a statement, Cathay Pacific noted that the airline’s liquidity balance remained “at a healthy level” of more than HK$28 billion ($3.6 billion) as of December 31, 2020. Adding to that, the city’s flag carrier has raised HK$6.74 billion ($773 million) from a convertible bond issue in February 2021.
“As travel demand gradually resumes, we remain absolutely confident in the long-term future of Cathay Pacific and Hong Kong as an international aviation hub,” Tang added.
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