• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Aviation

British Airways receives £2 billion government loan

5 years ago
in Aviation, highlights, Home, home-news, latest News
3 min read
0 0
0
British Airways - norvanreports

British Airways - norvanreports

61
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

British Airways, a core airline of the International Airlines Group (IAG), has received commitments for £2 billion ($2.73 billion) worth of loans.

This credit will be used by the airline to ‘enhance liquidity’ and provide ‘operational and strategic flexibility’ in 2021.

This fresh round of funding comes as the airline continues to take delivery of new aircraft while anticipating a partial recovery of air travel demand in the year ahead.

British Airways take-off
British Airways took a hit in December when restrictions were imposed against travelers from the UK in light of a new, more infectious coronavirus strain. Photo: Getty Images
Five-year term-loan for British Airways

At a value of £2.0 billion, IAG states via a press release that the five-year term-loan Export Development Guarantee Facility is underwritten by a syndicate of banks and partially guaranteed by UK Export Finance (UKEF).

British Airways expects to make use of this facility as early as this month, although it remains subject to an agreement of final terms with the lenders and UKEF – the UK’s export credit agency.

The UKEF provides the Export Development Guarantee to support the working capital and capital expenditure needs of UK exporters that meet certain criteria.

The airline is “entitled to repay the loan at any time on notice” and, according to the terms of this arrangement, will be restricted on its dividend payments to IAG – among other non-financial covenants.

RelatedPosts

CalBank Marks 35th Anniversary with Nationwide Donation of Academic Books

Chamber of Mines Calls for Collaboration and Flexibility in Minerals and Mining Act

Kofi Adams Praises Black Stars After Crucial Win Over Mali

BA Cityflyer, Southampton, Weekend Flights
Having a strong domestic airline is in the best interests of the UK government and its economy. Photo: Getty Images

“The proceeds from the UKEF facility will be used to enhance liquidity and provide British Airways with the operational and strategic flexibility to take advantage of a partial recovery in demand for air travel in 2021 as COVID-19 vaccines are distributed worldwide.” – Stephen Gunning, Chief Financial Officer, IAG via a press release seen by Simple Flying.

Finnair also a beneficiary of UK Export Finance

In an attempt to maintain liquidity and financial solvency, looking for large sums of money in the form of private and government loans has become a common practice in the past year. This has taken various forms, including putting aircraft or other assets up as collateral.

In mid-December, Finnair announced that it had been granted export credit support of more than €100 million ($119.3 million), which will come from the export credit agencies of Germany, France, and the United Kingdom.

In this carrier’s case, the credit support was offered to qualified purchasers of Airbus aircraft, more specifically, an Airbus A350-900 aircraft that was delivered to Finnair in September 2020.

Finnair
Finnair received credit support from UK Export Finance through its purchase of an Airbus A350-900. Photo: Getty Images

IAG reports that it continues to have strong liquidity with cash and undrawn facilities of €8.0 billion as of November 30th, excluding the UKEF facility. Above and beyond this UKEF loan, IAG is continuing to improve its liquidity by exploring other debt initiatives.

British Airways was hit particularly hard in December when a new, more-infectious mutation of the novel coronavirus was discovered in the UK.

In the span of a week, dozens of countries around the world imposed tough travel restrictions and even travel bans for UK travelers. This additional loan guarantee will be welcome news for the airline as it looks to weather these latest storms until a vaccine can be widely distributed.

Source: simpleflying
Via: norvanreports
Tags: £2 billion government loanBritish AirwaysCoronavirusInternational Airlines Group (IAG)UKEF
No Result
View All Result

Highlights

Letsile Tebogo Ready to Let His Legs Do the Talking Against Noah Lyles at World Championships

Ghana’s Dynamic Duo Leads Eight-Athlete Team to World Athletics Championships in Tokyo

Kinross Trims Stake in Asante Gold With $46m Share Sale

Danish EU Presidency Pushes for Expanded ‘Voluntary Return’ Programmes in Africa

Calls Mount for Removal of BOST Margin as Fuel Costs Rise

Fiscal Restraint by Gov’t a Significant Contributory Factor to Easing Inflation – Joe Jackson

Trending

Features

CalBank Marks 35th Anniversary with Nationwide Donation of Academic Books

September 9, 2025

CalBank Marks 35th Anniversary with Nationwide Donation of Academic Books CalBank PLC has marked its 35th anniversary...

Chamber of Mines Calls for Collaboration and Flexibility in Minerals and Mining Act

September 9, 2025

Kofi Adams Praises Black Stars After Crucial Win Over Mali

September 9, 2025

Letsile Tebogo Ready to Let His Legs Do the Talking Against Noah Lyles at World Championships

September 9, 2025

Ghana’s Dynamic Duo Leads Eight-Athlete Team to World Athletics Championships in Tokyo

September 9, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.