British Airways owner IAG had a torrid 2020, to put it lightly, but things are looking up for Britain’s flag carrier after it secured a £2billion loan yesterday that it will be able to start tapping into this month.
The facility has been underwritten by banks and partly by UK Export Finance, a Government arm that promotes British companies that trade internationally.
IAG, which raised £2.5billion from shareholders in the autumn, said it was also looking at other ways to raise more cash.
Grounded: British Aiways-owner IAG has secured a £2bn loan that it will be able to start tapping into this month
Western policies damage Africa and the planet, kill millions, and open doors to China
Joe Biden has pledged that one of his first acts as President will be rejoining the Paris Climate Treaty – which
gives China a complete pass on reducing emissions until at least 2030. Even Biden’s designated “climate envoy,” former Secretary of State John Kerry, says the existing treaty “has to be stronger,” but then claims China will somehow become an active partner, instead of the competitor and adversary it clearly is. His rationale: “Climate is imperative, it’s as imperative for China as it is for us.”
British Airways Gets Commitments For UKEF Guaranteed 5-year Loan Facility
LONDON (dpa-AFX) - International Airlines Group S.A. (IAG.L) said Thursday that British Airways has received commitments for a 5-year term-loan Export Development Guarantee Facility of 2.0 billion pounds underwritten by a syndicate of banks, partially guaranteed by UK Export Finance or UKEF.
UKEF, the UK s export credit agency, provides the Export Development Guarantee to support the working capital as well as capital expenditure needs of UK exporters upon meeting certain criteria.
IAG said British Airways expects to drawdown the facility in January 2021, subject to agreement of final terms with the lenders and UKEF.
The FTSE 100 tumbled lower on the back of a strong pound on the last trading day, as London’s leading index suffered its worst year since the 2008 financial crisis.
The index once again lagged behind its international peers as currency pressures and soaring coronavirus case numbers weighed on sentiment.
London’s top flight closed 95.3p, or 1.4%, lower at 6,460.52p at the close of play on New Year’s Eve.
This takes its total losses for 2020 to a 14.34% annual slump.
Although the index finished significantly higher than its lowest ebb in March, it remained significantly below January levels.
Joshua Mahony, senior market analyst at IG, said: “The FTSE 100 closed out the year on the back foot, with the value and cyclical nature of the UK markets ensuring significant underperformance compared with their US counterparts.