The NOK 1.5 billion (USD $174.5 million) three-year term loan facility is 100 percent guaranteed by the Norwegian Export Credit Guarantee Agency (GIEK).
Today (December 18, 2020), SAS announced that they have signed a NOK 1.5 billion (USD $174.5 million) three-year term loan facility agreement which is 100% backed by the Norwegian Export Credit Guarantee Agency (GIEK). After the Norwegian government announced that they would offer credit guarantees to airlines, SAS worked with four Nordic banks as well as GIEK to clarify the criteria, terms and conditions for the guarantee. The scheme has been approved by the Norwegian Parliament and the EFTA Surveillance Authority to support airlines’ liquidity and ensure continuity of airline operations in Norway.
In Friday’s announcement, SAS’ Chief Financial Officer, Magnus Örnberg, said,
“We are pleased that we have been able to sign this term loan facility with the support of the Norwegian government. The facility increases our financial flexibility during a time with continued uncertainty about when demand will normalize. At the same time, we continue our work to reduce our costs, increase efficiency and continuously adapt our production to current demand.”
The three-year term loan facility was coordinated by Nordea, Danske Bank, Nordea, SEB and Swedbank. The latter two banks served as Mandated Lead Arrangers.
SAS is the leading airline in Scandinavia, normally carrying over 30 million passengers annually from its main hubs in Copenhagen, Oslo and Stockholm to 125 destinations in Europe, the US and Asia (pre-pandemic figures). The company has targeted a reduction in carbon emissions by 25% by 2025 compared to 2005 levels and hopes to transition to 100% biofuel for domestic flights by 2030. Additionally, SAS offers ground handling services, technical maintenance and cargo services. The carrier is a founding member of the Star Alliance, which offers an extensive global network.
Source: SAS