British Airways owner IAG on Monday said it had boosted total liquidity by £2.45bn, via a loan deal and deferred pension deficit payments.
The company, which also owns Iberia and Aer Lingus, said a deal had been reached on a £2bn loan partially backed by the UK government and deferral of £450m in pension deficit contributions.
IAG said continued to explore other debt initiatives to further improve its liquidity. The five-year loan is underwritten by a syndicate of banks and partially guaranteed by UK Export Finance (UKEF).
“British Airways has now reached final agreement with UKEF and the lenders and expects to drawdown the facility before the end of February 2021,” IAG said in a statement on Monday.
It added that repayment of £450m in accumulated contributions plus interest would be added to the end of the existing pension recovery plan, currently March 2023. BA has agreed to provide property assets as security, which will remain in place until the airline has repaid the deferred contributions.
