Skymark Airlines (BC, Tokyo Haneda) has borrowed JPY1 billion yen (USD8.7 million) as a subordinated equity loan from Shoko Chukin Bank, the coronavirus-stricken carrier announced on December 24. Effective from December 24, the borrowing period is 10 years.
It is the first time the low-cost carrier has borrowed funds from Tokyo-based Shoko Chukin, a financial institution specialising in providing banking services to small and medium-sized enterprises. Skymark said it was taking the loan "for the purpose of strengthening its financial position."
Skymark Airlines revealed in July that it would raise JPY2 billion (USD17.4 million) in August through a shareholder allocation capital increase and the same amount again in subordinated loans - debt that ranks after other debts if a company falls into bankruptcy or liquidation.
The loans are being financed by the state-owned Development Bank of Japan and are recognised as equity in a conversion option. Also earlier this year, two other banks, Sumitomo Mitsui Banking and Mizuho Bank, agreed to refinance JPY30 billion (USD262 million) they lent to the airline last year.
