British Airways secures £1bn government-backed loan

British Airways has signed an settlement with the UK authorities for a £1 billion mortgage.

The deal, with UK Export Finance (UKEF) and a syndicate of banks, was confirmed by proprietor International Airlines Group (IAG) earlier.

It will take the type of a five-year export growth assure dedicated credit score facility (UKEF Facility).

The money comes along with a £2 billion UKEF assured facility that was introduced in December final 12 months and drawn in March.

“British Airways intends to draw down only if and when required and the facility will not be utilised upon signing,” an announcement defined.

Similar to the earlier facility, British Airways is entitled to repay any drawn mortgage at any time on discover and there are related non-financial covenants, together with restrictions on dividend funds to IAG.

At the top of September, IAG stated it had whole of €10.6 billion.

The group – which additionally contains Aer Lingus and Iberia – will replace traders and analysts in its third quarter outcomes announcement on November fifth.

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