On Tuesday, in a statement Cathay Pacific Airways Ltd said, the Hong Kong government had permitted the extension of the drawdown period for its $1.01 billion (HK$7.8 billion) loan facility by a year to June 2022. The development will help ease its liquidity position.
The bridge loan was part of a $5 billion rescue package led by the Hong Kong government and Cathay’s major shareholders Swire Pacific Ltd and Air China Ltd to help the airline weather the coronavirus-induced COVID-19 crisis.
Cathay’s CEO Augustus Tang also mentioned that the airline had not yet drawn down on the loan as it has adopted a suite of measures to save cash; having said that, the extension however allows it more flexibility to manage its liquidity position.
As of December 2020, Cathay had HK$28 billion in liquid assets; it had also raised HK$6.74 billion from a convertible bond issue in February and $650 million in a bond issue in May.
($1 = 7.7591 Hong Kong dollars)