Iberia and Vueling obtain syndicated financing of 750 and 260 million with ICO endorsement

Iberia and Vueling have signed two syndicated financing contracts for a maximum amount of 750 and 260 million euros, respectively, with the endorsement of the Official Credit Institute (ICO), informed IAG, an air group that includes both companies, to the Commission National Stock Market (CNMV).

Thus, the financing entities will request the ICO to grant two guarantees on the financing, said concession being a «necessary condition» for their disposal.

The agreement is within the legal framework established by the Spanish Government to mitigate the economic impact of Covid-19.

The financing contracts have a duration of 5 years, with an amortization date of April 30, 2023, with Iberia and Vueling being empowered to proceed with their repayment at any time, with prior notification.

The aforementioned contracts include certain non-financial obligations to protect the position of the financing entities, including restrictions on the distribution of funds in favor of direct or indirect partners.