Money News

Japanese airline ANA in talks to raise up to $4.7 billion capital from banks - Nikkei

TOKYO (Reuters) - Japanese airline company ANA Holdings Inc is in talks with multiple banks to raise capital of up to 500 billion yen ($4.7 billion) in the wake of the coronavirus-driven slump in air travel demand, the Nikkei business daily reported on Thursday.

Japan’s biggest air carrier is asking private banks and the state-backed Development Bank of Japan to extend subordinated loans, as it prepares for a long-term decline in passenger demand, the Nikkei said.

The private banks in talks include the banking arms of Mitsubishi UFJ Financial Group Inc, Sumitomo Mitsui Financial Group Inc and Mizuho Financial Group, according to the report.

ANA did not immediately provide comment when contacted by Reuters.

Like other airlines around the world, ANA has been hammered by a collapse in air travel as the pandemic forced many countries to impose international and domestic restrictions.

Last month it reported an operating loss of 159 billion yen ($1.51 billion) for the first quarter ended June.

Air transport stocks are the second worst performers among the 33 industries on the Tokyo market, down more than 36% so far this year. Only shares of mining companies, down 37%, have fared worse.

($1 = 106.6900 yen)

Reporting by Chris Gallagher and Makiko Yamazaki; Editing by Himani Sarkar & Shri Navaratnam