IAG obtains €1.1 billion of loans for Iberia, Vueling airlines

By Rebecca Melvin

New York, May 1 – International Airlines Group has signed syndicated financing agreements for €750 million and €260 million for its airlines Iberia Lineas Aereas de Espana SA and Vueling Airlines SA, according to a regulatory notice.

The banks involved will ask the Instituto de Credito Oficial to grant guarantees for these loans, and the financing is conditioned on obtaining those guarantees. The arrangement is within the legal framework set up by the Spanish government to mitigate the economic impact of Covid-19, according to the notice.

The financing arrangements have a five-year term, amortizing from April 30, 2023, but are repayable at any time on notice from the borrower.

The agreements contain non-financial covenants to protect the position of the banks, including restrictions on the upstream of cash to the rest of the IAG companies.

Further details were not immediately known.

IAG is a multinational airline operator registered in Madrid and operating from London.

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