Cathay Pacific will repay the Hong Kong government in a span of three to five years
Hongkong’s flag carrier Cathay Pacific Airways Ltd. (0293.HK) stated on Wednesday that it would repay the Hong Kong government the almost $2.52 billion worth of preference shares over a three to five-year period.
On Tuesday, the Hong Kong government has agreed to grant Cathay Pacific Airways a $5 billion recapitalization package to help the airline weather the coronavirus crisis. In exchange, the government would take a minority stake in the city’s flagship carrier.
“We would certainly be expecting to repay that over a 3 to 5 year period,” Cathay’s Chief Financial Officer Martin Murray said in an analyst briefing posted to the airline’s website on Wednesday.
According to Cathay’s Chairman Patrick Healy, the airline is grateful for the government’s capital support. The rescue deal would allow Cathay Pacific to maintain its operations and continue to contribute to Hong Kong’s international aviation industry.