Citing pandemic uncertainty, Air New Zealand delays proposed capital raiseCategory:News
Air New Zealand has postponed a planned capital raise by three months, to give it more time “to assess market conditions” amid the coronavirus pandemic.
The carrier now expects to complete its equity capital raise by 30 September, instead of 30 June, as earlier indicated.
The New Zealand government, which earlier disclosed its commitment to remaining the carrier’s majority shareholder after the capital raise, will extend a previously-announced loan facility to support the airline through the fundraising.
The loan facility, also known as the Crown Standby Facility, will be increased by NZ$600 million ($423 million) to NZ$1.5 billion. The facility term has also been extended through September 2023, with interest rates adjusted to reflect market conditions.
The three-month delay in fundraising will allow the Star Alliance carrier “more time to assess the impacts of recent developments on the airline’s path to recovery”.