Japan’s ANA Holdings in talks to raise $4.7bn in capital

ANA – All Nippon Airways (NH, Tokyo Haneda) parent ANA Holdings is in talks with several banks, including the government-run Development Bank of Japan, to raise JPY400-500 billion yen (USD3.8-4.7 billion) in financing, the Nikkei business daily reported on August 13. Foreseeing a long, slow recovery in demand amid the coronavirus pandemic, Japan’s biggest carrier has asked the banks – DBJ, MUFG Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank – to issue subordinated loans. Subordinated loans rank after other debts if a company falls into liquidation or bankruptcy. Usually, however, a company receives a subordinated loan if its financial condition is considered to have improved, giving it greater ability to borrow. By June, ANA Holdings had already secured about JPY1 trillion (USD9.5 billion) in loans and credit lines. It burns through about JPY100 billion (USD950 million) a month to lease aircraft and make interest payments, according to Nikkei, and has slashed costs and furloughed 43,500 employees. It reported on July 29 an operating loss of JPY159 billion (USD1.5 billion) for the first quarter from April to June, while offering no annual forecast. It expects to have enough operating funds for about a year, though this could shorten if passenger numbers continue to be sluggish. In related news, ANA has retired its last non-ER B767-300, ch-aviation schedule analysis has revealed. The last commercial flight of JA8342 (msn 27445) was from Ishigaki to Tokyo Haneda on July 30, Flightradar24 ADS-B data shows, after which it was ferried to Victorville via Anchorage Ted Stevens on August 12-13 for part-out and scrap.