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Cathay Pacific given extension to draw down $1 billion government loan

06/08/2021| 12:24:49 PM|

The extension would give it more flexibility to manage its liquidity position.

Cathay Pacific Airways Ltd said on Tuesday that the Hong Kong government had agreed to extend the drawdown period for a HK$7.8 billion (USD 1.01 billion) loan facility by a year to June 2022, giving it more flexibility to manage liquidity.

The bridge loan was part of a USD 5 billion rescue package led by the Hong Kong government and Cathay's major shareholders Swire Pacific Ltd and Air China Ltd last year to help the airline weather the COVID-19 crisis.

Cathay Chief Executive Augustus Tang said in a statement the airline had not yet drawn down on the loan as it adopted a suite of measures to save cash, but the extension would give it more flexibility to manage its liquidity position.

Cathay had HK$28 billion of liquidity as of December 2020 and also raised HK$6.74 billion from a convertible bond issue in February and $650 million in a bond issue last month.

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TAGS: Cathay Pacific | government loan
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