Investment banks Citi and JPMorgan are in the syndicate of banks providing $1.05bn of debt to the country’s national carrier Qantas.
It is understood that a large number of banks, including aviation lenders, are involved with offering the loan designed to offer the carrier more liquidity during the coronavirus outbreak.
Qantas told the market Wednesday that the debt was being secured against part of the group’s fleet of unencumbered aircraft, which were brought with cash in recent years.
The loan has a tenure of up to ten years at an interest rate of 2.75 per cent.
It takes Qantas’ cash balance to $2.95bn with an additional $1bn of undrawn debt available.
Qantas said the group’s debt remains at the low point of its target range at $5.1bn, with no major debt maturities until June next year.
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