Route Network Update for Cebu Pacific Air

PAL Holdings trading suspended, seeks more Airbus deferrals

22.06.2021 – 01:45 UTC

The Philippine Stock Exchange suspended trading in Philippine Airlines (PR, Manila Ninoy Aquino Int’l) parent PAL Holdings on Friday, June 18, in the wake of the publication of its 2020 annual report exposing a record loss amid “the extraordinary impact of the Covid-19 pandemic on operations.”

The report, which was issued in a stock exchange filing on June 17, as was its first-quarter report for 2021, does not comply with the Securities Regulation Code of the Philippines, the bourse said. This was because the Manila-based accounting firm SyCip Gorres Velayo & Co. had affixed a disclaimer to the accounts saying it had “not been able to obtain sufficient appropriate audit evidence” for an opinion on PAL’s finances.

PAL Holdings posted a record PHP73 billion peso (USD1.5 billion) net loss for the year, down from PHP10.3 billion (USD211 million) the previous year. Its 2021 first-quarter loss narrowed slightly to PHP8.6 billion (USD177 million) from PHP9.4 billion (USD193 million) year-on-year.

The accounting firm pointed out that the group’s liabilities exceeded assets by PHP164.02 billion (USD3.37 billion)…

Indigo Partners, IFC extend $250mn to Cebu Pacific

19.04.2021 – 10:56 UTC

Cebu Pacific Air (5J, Manila Ninoy Aquino Int’l) has approved a USD250 million investment in the form of convertible bonds from both the International Finance Corporation (IFC), which is part of the World Bank, and an affiliate of the American private equity firm Indigo Partners, it revealed in a Philippine Stock Exchange filing on April 19.

The airline said its board of directors had approved the investment on April 16. The funds will emanate from the IFC Emerging Asia Fund and from Indigo Philippines LLC, which according to online business data sources was registered as a limited liability company in Wilmington, Delaware on December 1, 2020.

The disclosure did not specify how much of the USD250 million was being provided by the IFC and how much by Indigo Partners. IFC Emerging Asia Fund is a USD693 million private equity fund managed by the IFC Asset Management Company, and the filing described the IFC as the largest global development institution focused exclusively on the private sector in developing countries.

The number of underlying shares…

Cebu Pacific looks to raise another $6.6mn in cash

01.04.2021 – 06:09 UTC

Cebu Pacific Air (5J, Manila Ninoy Aquino Int’l) has listed 328,947,368 convertible preferred shares with a par value of PHP1.00 peso (USD0.02) per share for trading on the main board of the Philippine Stock Exchange (PSE), the company said in a stock exchange filing. BPI Capital Corporation acted as the sole global arranger, book-runner, and underwriter for the offer which should raise USD6.578 million if successful.

This followed the successful completion of its convertible preferred shares stock rights offering which ran from February 26 to March 4, 2021, during which it raised PHP12.49 billion (USD256 million) from existing shareholders.

“The funds raised from the offer will go towards strengthening the balance sheet of the company and ensuring it has sufficient runway to thrive in the new normal,” commented president and chief executive officer Lance Gokongwei.

“Cebu Pacific was in a unique situation among its airline peers in that it entered into the COVID-19 pandemic with a historically strong ability to generate free cash flow. It achieved a strong liquidity position as of December 31,…

Cebu Pacific borrows ₱16bn from Philippine banks

12.03.2021 – 09:58 UTC

Cebu Pacific Air (5J, Manila Ninoy Aquino Int’l) has secured a PHP16 billion peso (USD206 million) 10-year loan from a syndicate of domestic banks in what is being punted as a sign of confidence in the carrier and the recovery of the Philippine economy.

The loan also coincides with the launch of the Philippines’ COVID-19 vaccination programme, which, it is hoped, will restore passenger confidence in flying.

The low-cost carrier in a statement said it would use the proceeds of the loan to fund its capital expenditures and for other general corporate purposes. The loan would also provide a cushion against unexpected working capital requirements that may arise from fuel price and foreign exchange rate volatility.

The loan is being forwarded by both government-owned financial institutions and private-sector lenders, including the Development Bank of the Philippines (DBP), the Land Bank of the Philippines (LBP), the Asia United Bank Corporation (AUB), Bank of the Philippine Islands (BPI), Metropolitan Bank & Trust Company (MBTC), and Union Bank of the Philippines (UBP).

Cebu Pacific President and…

Read More:Route Network Update for Cebu Pacific Air

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