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A $1.05bn loan secured by Qantas to help the airline see through the coronavirus crisis has sent its share price soaring, closing up 26 per cent at $3.27.Provided by 10 local and offshore lenders including Australia’s big four banks, the loan was made against seven near new Boeing 787-9 aircraft for which Qantas paid cash.
At a time when money could be hard to come by, Qantas chief executive Alan Joyce said there was no shortage of lenders willing to assist.
“It shows you how people view Qantas. Because of the tough decisions we’ve made over the last decade, people are seeing us as the top airline out there that they want to lend to,” Mr Joyce said.
“They see us an airline that’s in a great strategic position They see us as one of the survivors.”
To be paid back over 10 years at an interest rate of 2.75 per cent, the loan will lift the cash balance for the Qantas Group to $2.95bn, with an additional $1bn undrawn facility available.
In comparison, a $900m loan secured by Air New Zealand from the New Zealand government was to be paid back in 24 months at an interest rate of 8 per cent.