SAS Signs Three Year SEK 3.3 Billion Revolving Credit Facility Agreement
SAS announced on Tuesday that they have signed a three-year revolving credit facility agreement for SEK 3.3 billion. The credit facility will be 90 percent guaranteed by the Swedish and Danish governments.
Today, SAS announced that they have signed a three-year revolving credit facility for SEK 3.3 billion (USD $335.6 million). The credit facility has been arranged with a consortium of four Nordic banks including Danske Bank, Nordea, SEB and Swedbank and will be 90 percent guaranteed by the Swedish and Danish states. The guaranteed debt package has been approved by the European Commission and is intended to support the carrier’s liquidity as they prepare for recovery. In Tuesday’s announcement, SAS’ Chief Financial Officer, Torbjørn Wist said,
“We are very pleased that we now have been able to secure a credit facility with the support of the Danish and Swedish governments. The agreement strengthens our financial position in a difficult period when most of our fleet is grounded. Going forward we will continue our focused work on reducing costs and seeking additional support from the Scandinavian governments to ensure SAS continues to be the leading provider of critical airline infrastructure in Scandinavia. As part of this we will further dialogue with the Norwegian government to be able to access up to NOK 1.7 billion of additional state guaranteed funding.”
SAS is the leading airline in Scandinavia, carrying over 30 million passengers annually from its main hubs in Copenhagen, Oslo and Stockholm to 125 destinations in Europe, the US and Asia. The company has targeted a reduction in carbon emissions by 25% by 2030 compared to 2005 levels and hopes to transition to 100% biofuel for domestic flights by 2030.