Cathay Pacific has been offered a reprieve by the Hong Kong SAR Government, which has extended the drawdown period of the HK$7.8 billion loan facility for 12 months until June 8, 2022. The bridge loan facility was provided to the airline as part of the HK$39 billion recapitalisation announced on 9 June 2020 to help the airline withstand the industry-wide downturn.
“We greatly appreciate the Government’s confidence in the airline and its long-term prospects despite the challenges brought on by the pandemic,” says Cathay Pacific Chief Executive Officer Augustus Tang. “We have not drawn down the facility over the past 12 months as we have been adopting a suite of measures to preserve cash. We are thankful for the Government’s decision to extend the drawdown period, which provides us with more flexibility to manage our liquidity position.”
Cathay Pacific Group’s liquidity balance remains at a “healthy level of more than HK$28 billion as at 31 December 2020” confirms the airline, which has also highlighted the successful convertible bond issuance in February that raised HK$6.74 billion and its Medium Term Note programme that raised US$650 million in May.
Tang added: “We continue to be able to raise debt financing in the capital markets. This reflects the investing community’s confidence in our prospects as a leading airline. As we look to the future, it is critically important that we continue to remain agile, focus on prudent cash management and explore capital financing opportunities as they arise. As travel demand gradually resumes, we remain absolutely confident in the long-term future of Cathay Pacific and Hong Kong as an international aviation hub.”