Iberia And Vueling Sign Syndicated Loan Agreements

Spanish loans have a term of five years, but are repayable at any time. IAG said they had non-financial agreements to protect banks, including restrictions on the use of cash for other IAG companies, of which British Airways is a member. Iberia and Vueling, with the support of the official credit institution (ICO), have signed two syndicated financing contracts for up to 750 and 260 million euros respectively, IAG, an aviation group that includes the two companies, told the National Stock Market Commission (CNMV). Iberia will borrow 750 million euros as part of the syndicated financing agreements and the low-cost airline Vueling will borrow 260 million euros, according to IAG. These loans are supported by the Spanish public bank, the Instituto de Crédito Oficial, to support airlines during the coronavirus crisis. The loans are “commercial loans agreed with the banks under current market conditions with a 70% public guarantee,” IAG said. International Airlines Group (IAG) announces that IBERIA ESPA-A S.A. OPERADORA, SOCIEDAD UNIPERSONAL (IBERIA) and VUELING AIRLINES, S.A. (“Vueling”) have signed consortium financing agreements of 750 million euros, or 260 million euros. The owner of British Airways, IAG SA, borrowed 1 billion euros (US$1.1 billion) from its Spanish units Iberia and Vueling to meet the collapse in travel demand. IAG (International Airlines Group), the parent company of Iberia, British Airways, Aer Lingus, Vueling and LEVEL, announced on Friday that it had reached an agreement with Spanish banks for a 70% loan guaranteed by the country`s government. The amount of the loan could be a short-term solution, but insufficient if the trip does not fly quickly, as soon as the travel bans in Europe and Latin America are lifted (the latter is Iberia`s main long-haul market).

Banks participating in the trade union agreement will apply for guarantees from the National Institute of Credito Oficial and the financing is conditional on them being obtained, London-based IAG said in a statement on Friday. Iberia plans to raise 750 million euros and Vueling 260 million euros. Five-year repayment loans are repayable at any time and other IAG companies exclude the use of funds from Spanish divisions. The loan guarantee from Iberia and Vueling of Spain gave Ryanair an example of state aid under the guise of Covid 19 aid, which is illegal under EU rules. Ryanair has announced that it will challenge such aid in EU courts. The loans are granted on the official guarantee of the OIC, but the airlines and banks have been approved by the Spanish government. The banks participating in the consortium agreement will ask the Instituto de Crédito Oficial (ICO) to grant guarantees for these loans and the financing is conditional on the provision of these guarantees. The agreement is part of the legal framework established by the Spanish government to mitigate the economic impact of COVID-19. . Airbus is developing a solution for the A330 and A350 family aircraft, which allows airlines to… Read more: European Tally of State-Backed Company Loans Reached $18 billion Iberia would receive 750 million euros and Vueling 260 million euros. The money can only be used by these airlines and cannot be distributed to IAG.

Iberia cannot use these funds for the purchase of Air Europe, which is still under review by Brussels. The above contracts include certain non-financial obligations to protect the position of funding units, including restrictions on the allocation of resources to direct or indirect partners. In the press release, Stephen Gunning, IAG`s chief financial officer, said the agreement “is part of the legal framework put in place by the Spanish government to mitigate the economic impact of Covid-19.” An Iberia plane has landed at the Australian airport for the first time in its history, like Spanish…

This entry was posted in Geen categorie. Bookmark the permalink.