Quick links: United States | Major Indices | Indices Future | Real-time Commodities | Webinars | Coronavirus | Economic Calendar
19 Sept 2021
British Airways IAG will not Raise Capital from Shareholders
The Index Today
British airways owner IAG has announced it will not acquire funding through its shareholders to move past the covid-19 crisis. Luis Gallego told The Sunday Times, “We do not see necessity to do a rights issue and are not considering it.”
The company plans to seek suitable funding options with relevant banks. IAG had earlier made an announcement that it plans to raise 825 million euros from a convertible bond to support its balance sheet.
According to reports, the company implemented a capital raising strategy for 2.75 billion euros. Although IAG has huge debts, it also has a strong liquidity of approximately 10.2 billion euros.
Luis Gallego said, “We have revolving credit facilities, we are analyzing other ways of financing the group so we have alternatives before we consider another rights issue.” He further went on to elaborate that the paying off previous debt is to be a priority for now.
Easy jet Plc chose to raise $1.7 billion from its shareholders to help recover from the pandemic. The airline company declined to merge or takeover from wiz air earlier this month. British airways chief executive Gallego has responded to claims about merging with easyJet saying that “We talk to all airlines that can be interesting to us.”
©Photo: Bloomberg Finance LP