Easyjet Secures A $1.87b (£1.38b) Loan With UK Guarantee

EASYJET Secures A $1.87b (£1.38b) Loan With UK Guarantee over five years

British budget airline Easyjet has just eased its coronavirus financial worries by securing a five-year loan deal worth $1.87 billion (£1.38b), backed by a partial guarantee from Britain.

The load was reportedly underwritten by a syndicate of banks and backed by guarantees provided by a scheme from Britain’s UK Export Finance, which includes some restrictions around future dividend payments.

Easyjet, like so many companies involved in the UK travel sector, have been badly affected by the pandemic, and have already had to get rid of 4,500 members of staff, asked shareholders for financial input, and sold off dozens of its fleet of aircraft.

With no sign of the pandemic travel restrictions being lifted for the immediate future and no real sign of flights getting back to anywhere near normal, it is another massive blow, after the company had been hoping for a recovery in early Spring to enable them to recoup some of the huge losses they have incurred whilst their fleet has been grounded.

A spokesman for Easyjet has said, “EasyJet will continue to review its liquidity position regularly and will continue to assess further funding opportunities, should the need arise”, but they are not alone, as other well known British companies have hit difficult times, including British Airways, and Rolls Royce, who have used UK Export Finance guarantees.

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Written by

Chris King

Originally from Wales, Chris spent years on the Costa del Sol before moving to the Algarve where he is a web reporter for The Euro Weekly News covering international and Spanish national news. Got a news story you want to share? Then get in touch at [email protected]

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