Japan’s ANA to get $3.8b loans to tackle virus impact

ANA Holdings is set to receive about 400b yen ($3.8b) in subordinated loans from five lenders, people with knowledge of the matter said, as the struggling Japanese airline reels from the steep dropoff in passenger traffic due to the pandemic. Sumitomo Mitsui Financial Group, Mizuho Financial Group, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Trust Holdings and the government-backed Development Bank of Japan will participate in the financing, said the people. ANA as well as Japan Airlines are forecasting domestic passengers to drop by about 50% this month. ANA was considering raising 200b yen via a public share offering and cutting costs by selling aircraft and disposing of non-core businesses, the Nikkei newspaper reported last month. An ANA spokesperson declined to comment, saying that the carrier wasn’t the source of information. Kyodo News reported that Sumitomo Mitsui and the Development Bank of Japan will each lend 130b to ANA, while Mizuho Financial Group will provide 60b yen. Mitsubishi UFJ will offer 50b yen and Sumitomo Mitsui Trust Holdings will add 30b yen, the news agency reported.<br/>