Qantas Secures A$1 Billion In Funds Despite Credit Crunch

Qantas Airways has raised A$1.05bn ($633m) to bolster its balance sheet, one of the first successful private debt raisings by an airline since countries around the globe began shutting their borders against coronavirus, forcing the industry to ground thousands of aircraft, the Financial Times reported. The 10-year loan advanced by a consortium of domestic and international banks is secured against part of the Australian carrier’s fleet at an interest rate of 2.75 per cent. It comes amid warnings by the global airline industry that up to half the world’s carriers are at risk of bankruptcy due to the coronavirus crisis. “Investors are making the call that Qantas has enough liquidity to get through the crisis,” said Blake Henricks, portfolio manager at Firetrail Investments, which owns shares in Qantas. Read more