International Consolidated Airlines Group (IAG) has announced its proposal to undertake a capital increase with pre-emptive subscription rights to raise gross proceeds of up to €2.75 billion. Qatar Airways Group, IAG’s largest shareholder (25.1% holding), has confirmed its support for the proposed capital increase and irrevocably undertaken to subscribe for its pro rata entitlement. The remainder of the proposed capital increase
is fully underwritten on a standby basis.
The Proposed Capital Increase will strengthen IAG’s balance sheet by reducing financial leverage and increasing IAG’s overall liquidity position. IAG has also accessed additional pools of liquidity including the £750 million extension of its worldwide commercial partnership with American Express and secured further aircraft financing.
IAG believes the proposed capital increase, together with its quick response to the COVID-19 crisis, should enable the Group to emerge from the current pandemic in a strong position, with more resilience, greater flexibility and the ability to make the right operational and strategic decisions for the long term benefit of all its stakeholders.
