ANA Holdings undertakes $3.3 billion debt financing
All Nippon Airways’ parent company has decided to undertake a fresh round of debt financing from the Development Bank of Japan, amounting to Y350 billion ($3.3 billion).
The agreement is subject to a 29 June borrowing deadline and the debt financing will be repaid over the long term, “determined by negotiation with the lender”, ANA Holdings said in a 28 May statement.
This is based on the company’s financing plan for the current financial year ending 31 March 2021, approved at a 28 April board meeting.
ANA says: “Though the consolidated forecast of the company for [the financial year ending 31 March 2022] is yet to be determined at the present time while it is unknown when the outbreak of coronavirus will end, the impact of this financing on the business results for the current year is expected to be minor.”
In the recently concluded financial year, the company carried on its balance sheet Y843 billion of interest-bearing debt, which has a 6.5-year repayment period against operating cash flows. This was Y789 billion in the preceding year, with a 2.7-year repayment period.