Norwegian receives first financing under sector’s rescue package

Norwegian has obtained the first 10% of the funding that Norway’s govt is guaranteeing for it under a rescue plan for the national airline industry. March 19, Norway announced an NKr6b (US$542m) bailout for the sector, of which half would go to Norwegian. The state pledged to guarantee 90% of the total amount if financial institutions contributed the other 10%. Norwegian now says two Nordic banks have received credit-committee approval to contribute the 10% required to provide the first, NKr300m tranche in financing to the airline, which is working to unlock the NKr2.7b covered by 2 further tranches. Each tranche has a maximum maturity of 2 years. The company has found itself locked out of capital markets given the impact of coronavirus on the airline sector, limiting its options to secure financing. <br/>