Fiji Airways Signs Agreement With the Asian Development Bank for $65 Million in Liquidity Support
Fiji Airways has signed a $65 million Liquidity Support Facility with the Asian Development Bank (ADB). The added liquidity will help the airline cover operating costs and meet financial obligations to weather the pandemic-related downturn.
On Friday (March 12, 2021), Fiji Airways, Fiji’s National Airline, announced the signing of a $65 million Liquidity Support Facility with the Asian Development Bank. The added liquidity will help the carrier cover operating costs and meet financial obligations as they weather the pandemic-related downturn in travel demand. The financing includes a $45 million ADB loan and an additional $25 million loan from the Leading Asia’s Private Infrastructure Fund (LEAP).
In Friday’s announcement, Fiji Airways’ Managing Director and Chief Executive Officer, Mr. Andre Viljoen, said,
“We are delighted to receive ADB’s financial support at this critical time. The US$65 million Liquidity Support Facility from ADB is a great endorsement for Fiji Airways and its strategy of bridging the world to Fiji and the South Pacific with a sustainably profitable, high-quality air service. ADB’s facility, along with the dedicated support of Fiji Airways’ staff, management, Board, and other stakeholders, will allow us to weather the turbulence of COVID-19 and sustain our critical role in connecting the world to the Fijian and regional economies.
“Fiji Airways will lead the country’s economic recovery through tourism and trade when travel resumes safely, and this historic support facility from the ADB will help us do just that. We thank the Fijian Government, especially the Honourable Prime Minister and the Honourable Attorney General, for their support and the requisite Government guarantee that made this support facility possible.”
Also commenting on the new financing agreement, ADB’s Private Sector Operations Department Infrastructure Finance Division Director for East Asia, Southeast Asia, and the Pacific, Mr. Jackie B. Surtani, added,
“COVID-19 has crippled the international aviation industry. This has severely affected Fiji and other Pacific countries which rely on air links for critical freight, health, education, communication services, and especially for tourism—which accounts for around one-third of Fiji’s gross domestic product. This investment underscores the breadth of ADB’s commitment to ensure continued essential infrastructure services in Fiji and throughout the Pacific.”
Founded in 1951, the Fiji Airways Group includes Fiji Airways, domestic and regional subsidiary Fiji Link, Pacific Call Comm Ltd. and a 38.75% stake in Sofitel Fiji Resort & Spa on Denarau Island, Nadi. The airline is the National Airline of Fiji, the largest inbound carrier to Fiji, and operates the most comprehensive South Pacific network, connecting the region to and from Australia, New Zealand, the United States and Asia.
LEAP was established in 2016 with a $1.5 billion commitment from the Japan International Corporation Agency with the purpose of delivering high quality and sustainable private sector infrastructure projects for ABD’s developing member countries. Founded in 1966, the Asian Development Bank is committed to achieving a prosperous, inclusive, resilient and sustainable Asia-Pacific, while continuing efforts to eradicate extreme poverty. ADM is owned by its 68 members, 49 of which are from the region.
Source: Fiji Airways