Hong Kong Extends Drawdown Period of HK$7.8 Billion Loan Facility to Cathay Pacific

Cathay Pacific has welcomed the Hong Kong SAR Government’s agreement to extend the drawdown period of the HK$7.8 billion loan facility for 12 months.

The arrangement extends the drawdown period of the facility to 8 June 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.

Cathay Pacific Chief Executive Officer Augustus Tang said, “We greatly appreciate the government’s confidence in the airline and its long-term prospects despite the challenges brought on by the pandemic. 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’s liquidity balance remains at a healthy level of more than HK$28 billion as at 31 December 2020. Additionally, the group has successfully raised HK$6.74 billion from a convertible bond issue in February, and US$650 million under the Medium Term Note programme last month.

 “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,” Mr Tang added.

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