MANILA - Cebu Air Inc said Friday its board has approved a total of P16 billion in 10-year term loans from several domestic banks as it sought to revive the business stricken by the COVID-19 pandemic.
The banks include Development Bank of the Philippines and Land Bank of the Philippines with Asia United Bank Corporation, Bank of the Philippine Islands, Metropolitan Bank & Trust Company, and Union Bank of the Philippines, Cebu Air said in a disclosure to the stock exchange.
"The proceeds of the loan will be used by the Corporation to fund its capital expenditures and other general corporate purposes," the country's largest airline said.
Cebu Pacific earlier said it was looking at "mutiple" efforts for recapitalization while stimulating air travel demand battered by the coronavirus pandemic.
The airline also aims to raise at least P12.5 billion through a stock rights offer.
Global airlines are grappling with the impact of the coronavirus pandemic that almost shuttered air travel in 2020. Airlines worldwide have had to cut cost, workers and operations to stay afloat.
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