British Airways has secured two new financing agreements that will improve its liquidity by £2.45 billion, the airline’s parent International Airlines Group has announced.
The airline has reached final agreement with UK Export Finance on a £2.0 billion Export Development Guarantee term-loan over five years. The deal, annoucned at the end of December, is underwritten by a syndicate of banks and the airline expects to draw down the facility before the end of February.
The airline has also reached agreement with its pension scheme to defer £450 million of pension deficit contributions due between October 2020 and September 2021. The airline expects to repay the £450 million plus interest in March 2023 and will provide property assets as security.
In addition to these arrangements, IAG says it will continue to explore other debt initiatives to improve further its liquidity.