The operator of low-cost carrier Cebu Pacific has raised $250 million (around ₱11.96 billion) in fresh funds as it continues to face financial hemorrhage with a net loss of ₱7.29 billion in the first quarter due to lingering coronavirus restrictions.
In a statement issued Monday, listed Cebu Air Inc. said the multimillion-dollar investment from the IFC, the IFC Emerging Asia Fund—a private equity fund managed by the IFC Asset Management Company—and American private equity firm Indigo Partners could provide longer liquidity to help the company withstand the effects of the pandemic until travel demand recovers.
In March, CEB also inked a ₱16-billion loan deal with the state-run Development Bank of the Philippines and Land Bank of the Philippines. Other lenders in the term loan facility include Asia United Bank Corporation, Bank of the Philippine Islands, Metropolitan Bank & Trust Company, and Union Bank of the Philippines.
Meanwhile, its disclosure in the local bourse showed that CEB widened its net loss by a whopping 516.9% to ₱7.29 billion against the ₱1.18 billion posted a year earlier. Air travel remains"far behind its normal activity level due to ongoing flight restrictions and weak demand for travel", CEB said.
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