Cathay Pacific says HK$7.8b bridge loan is on commercial terms

Cathay Pacific Airways said today the HK$7.8 billion bridge loan being made available by the government is for up to a year at an interest rate of 1.50 percent a year above HIBOR, in addition to an upfront fee payable on each drawdown.

The airline says the the terms of the bridge loan were agreed “at after arm’s length negotiations between Cathay Pacific and Aviation 2020.''

The board considers that the bridge loan is on normal commercial terms and is fair and reasonable as far as the shareholders are concerned.