Japan’s ANA Holdings mulls ¥200bn public offering

ANA Holdings is considering a public offering of about JPY200 billion yen (USD1.89 billion), sources told Nikkei on September 25, despite having already secured around JPY1 trillion (USD9.5 billion) in working capital from banks earlier this year. With passenger demand remaining low and unlikely to recover anytime soon, the ANA – All Nippon Airways (NH, Tokyo Haneda) parent has reportedly decided to boost its capital through a public offering of common stock. ANA Holdings posted a JPY108.8 billion (USD1 billion) quarterly net loss for the period from April to June, and in August passenger numbers at All Nippon Airways were 96% lower than they were for the same month last year. ANA now fears a net loss for the year to March 31, 2021, of some JPY600 billion (USD5.7 billion). With its capital ratio worsening, it has been in talks with banks since August on raising JPY400 billion (USD3.8 billion) in subordinated loans, but only half of the sum can be counted as capital, Nikkei explained. Lenders are reluctant to provide more, prompting the company to contemplate a public offering, especially considering the current strength of the stock market in Tokyo. In time for such a move, ANA Holdings will be keen to demonstrate any cost reduction measures, which may include selling aircraft and non-core businesses, Nikkei reported. The aviation sector continues talks with the government to ease or exempt airport charges and landing fees.