Finnair has announced the completion of a repayment to the State of Finland valued at 400 million euros, with interest on top.
The carrier signed an agreement for a hybrid loan during the COVID-19 pandemic back in March 2021, with it being converted in the same month 2022 to a capital loan.
Without further ado, let’s get into it…
Finnair Completes 400m EUR Repayment to State of Finland…
“In Finnair’s rights offering of 570 million euros executed in November 2023, the State of Finland subscribed for its pro rata share of the new shares on the basis of subscription rights allocated to it.”
“The State of Finland paid the subscription price of the shares by offsetting it against a corresponding amount of the principal of the capital loan.”
“This totaled 318.6 million euros. Finnair has today repaid the remainder of the capital loan, i.e. 81.4 million euros, to the State of Finland.”
“In addition, Finnair paid the related interest and other fees of 48.9 million euros to the State.”
“If the capital loan had not been repaid, it would have accrued approximately 52 million euros in interest and other fees in 2024.”
“After the repayment of the capital loan and the previously repaid hybrid bond, the company has no loans that are deemed equity capital.”
Now that the carrier has no loans that are deemed equity capital, all eyes will be on how the Finland legacy carrier will perform both in the short term and also in the medium-term too.
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