BA parent IAG confirmed on Monday (4 January) it had received the necessary commitments and hoped to draw the facility immediately, subject to final terms.
The £2 billion cash injection has been underwritten by a syndicate of banks and is partially guaranteed by the state-backed UK Export Finance agency.
The UKEF is the UK’s export credit agency; its export development guarantee is designed to support the working capital and capital expenditure needs of UK exporters.
BA can repay the loan at any stage of the five-year term.
The proceeds, said IAG, would be used to boost BA’s liquidity and provide the carrier with "the operational and strategic flexibility to take advantage of a partial recovery in demand for air travel in 2021 as Covid-19 vaccines are distributed worldwide".
IAG said it had cash reserves and undrawn facilities totalling £8 billion as of 30 November, excluding the newly announced £2 billion UKEF facility.
Stephen Gunning, the group’s chief financial officer, added IAG was exploring other debt initiatives to further boost liquidity.
