Aeroflot to raise $1b in Russia's first state-backed rescue of pandemic

Aeroflot said on Friday the state would take up 50 billion roubles worth of its 80-billion rouble ($1 billion) new share offering, a vital cash injection for Russia's flagship airline that is reeling from the pandemic. Russia grounded flights abroad in April and has only resumed some routes, cutting revenue streams in half for Russia’s airlines that are also grappling with a plunge in the rouble. Some airlines will need state support to survive, analysts say. Aeroflot is holding a secondary public offering in Moscow to be completed around Oct. 26 and has raised 39.1b roubles during bookbuilding, including 9.1b roubles from the Russian state, the airline said. The Russian government, which already holds a 51.17% stake in Aeroflot, will also exercise pre-emptive rights to buy a further 40.9 billion roubles in shares, Aeroflot said. Market investors will buy shares worth 30 billion roubles, it added.<br/>