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Capital Raising Deferred to H2
The capital raising would now be completed before 30 September 2021, instead of 30 June – as was proposed earlier in February. The airline has signed a binding term sheet with the NZ government on this.
This was a joint decision taken by the airline and its majority shareholder – the Government of New Zealand, as informed by AIZ. The federal government of the country owns 52% of the stake in the company.
To help the airline tide over the crisis, the government is to enhance its credit facility by up to NZ$600 million. The earlier limit of the credit facility stood at NZ$900 million, and with this increase, the total size has jumped to NZ$1.5 billion.
Transurban Queensland To Raise Money
Meanwhile, Transurban Queensland – a majority-owned subsidiary of Transurban Group (ASX:TCL) – is planning to raise AU$2.6 billion through a fresh debt offering in Singapore markets.
The company plans to repay its existing debt using this new tranche of debt and for further expansion.
The company clocked losses of AU$77 million in six months ended 31 December 2020.
TCL was trading lower by 0.367% to AU$13.590.
Meanwhile, other travel stocks listed on the ASX also seem to be under pressure today. In the early hours of the trading session, Qantas Airways (ASX:QAN) was down by 0.370% to AU$5.400, Flight Centre Travel Group (ASX:FLT) was trading at AU$18.480, down 2.378%, and Webjet (ASX:WEB) was trading lower by 2.167% to AU$5.420.