Aeroflot does not need to borrow anymore yet, but it provides a loan



Aeroflot (SU, Moscow Sheremetyevo) has already created a safety cushion ahead of the typically difficult autumn season and does not see the need for further borrowing in the near future, the chief financial officer of the Russian air carrier Andrey Chikhanchin told Reuters.

According to him, the company has in reserve unused loans under state guarantees in the amount of 24 billion rubles (329 million US dollars), stressing that in the summer the company had no difficulties in financing its activities, and by the fall it had sufficient liquid funds.

“At the moment we have about 100 billion rubles. [USD1.37 billion] in debt, excluding rent payments, and account balances are quite large. The debt is mainly secured by account balances, ”he said.

Despite rebuttals and news reports In contrast, in the spring, Chikhanchin confirmed to a news agency that Aeroflot had placed exchange-traded bonds worth 24.65 billion rubles ($ 338 million) at a rate of 8.35% in June. Previously, he planned to raise 15 billion rubles (205 million US dollars) at 9.15%.

The CFO claimed that the total demand for this corporate debt is around 70 billion rubles ($ 958 million), of which 46 billion rubles ($ 630 million) have been drawn and 24 billion rubles ($ 328 million) are held in reserve. … According to him, some of the proposed bonds have government guarantees.

“We are diversifying our borrowing instruments. Government-guaranteed loans would have been cheaper, but we decided to use another available instrument, ”he said, adding that the company was aiming for an average debt ratio of around 7%.

In related news, Aeroflot said on the stock exchange that the board of directors meeting on June 29 approved an extension of the term for the provision of funds under a RUB 39 billion ($ 531 million) credit line from the state-owned company. Sberbank, from June to December 31, 2021

The state-guaranteed non-revolving credit line was signed with Sberbank in August 2020. All other terms of the transaction remain unchanged.


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