Gov’t extends Cathay Pacific’s access to $7.8b loan facility

The drawdown period will be extended 12 months to 8 June 2022.

The Hong Kong government has extended the drawdown period of the $7.8b loan facility granted to Cathay Pacific for 12 months.

This forms part of the $39b recapitalization provided on 9 June 2020, in aid of the airline amidst the crisis brought by the pandemic.

“We greatly appreciate the Government’s confidence in the airline and its long-term prospects despite the challenges brought on by the pandemic,” Cathay Pacific CEO Augustus Tang said.

“We have not drawn down the facility over the past 12 months as we have been adopting a suite of measures to preserve cash.”

He added the extension will give the airline flexibility in managing its liquidity position.

The Group’s liquidity balance remains at a “healthy level” at more than $28b as of 31 December 2020.

Cathay Pacific has also raised some $6.74b from a convertible bond issue in February and US$650m through its Medium Term Note programme in May.

“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,” Tang said.

“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.”