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Bloomberg
Air New Zealand plans to raise capital by the end of next month through the issue new shares as its losses continue to mount during the pandemic.
The Auckland-based national carrier predicted a record full-year pretax loss of more than NZ$800 million ($540 million), after reporting loss of NZ$367 million in the six months ended on December 31. It intends to launch an equity capital raise before the end of March or shortly thereafter, subject to market conditions, it said.
The airline, just over half-owned by the New Zealand government, has been kept alive by Crown support of NZ$2 billion comprising a NZ$1 billion loan facility and up to NZ$1 billion in non-voting redeemable shares. The capital raise will allow the airline to begin to exit those arrangements, which carry considerable financing costs.
The company has drawn down NZ$760 million of the Crown facility. When the drawdown gets to NZ$850 million it intends to begin issuing redeemable shares to the Crown, and this is expected in March, the airline said.