CX & HK SAR government

Issued on 9 Jun 20

Cathay Pacific announces HK$39 billion capital reorganization plan, Hong Kong SAR government will buy shares and provide loans.


Cathay Pacific announced a HK$39 billion capital restructuring plan. The Hong Kong SAR Government will acquire shares through Aviation 2020 Limited, a Hong Kong company wholly-owned by the Financial Secretary Incorporated. Cathay Pacific Airways will issue preference shares and warrants to the Hong Kong SAR Government, involving HK$19.5 billion and HK$1.95 billion, respectively. The Hong Kong SAR Government also provided Cathay Pacific with HK$7.8 billion in interim loan financing

The recapitalization plan comprises three tranches:



• Tranche A: Cathay Pacific will issue HK$19.5 billion in preference shares with detachable warrants to the Hong Kong Special Administrative Region (HKSAR) Government after requisite shareholders’ approval has been obtained.


• Tranche B: Cathay Pacific will launch a HK$11.7 billion rights issue of shares to existing shareholders after requisite shareholders’ approval has been obtained.


• Tranche C: the HKSAR Government will provide a HK$7.8 billion bridge loan facility to Cathay Pacific, available for drawdown immediately.


Details of announcement: https://news.cathaypacific.com/cathay-pacific-announces-hk-39bn-in-recapitalisation-financing


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