Cebu Pacific secures $329m loan from local syndicate

Philippine low-cost carrier Cebu Pacific has secured a Ps16b ($329m), 10-year loan today, from a syndicate of private and government banks. Proceeds of the loan will go towards funding “capital expenditures and other general corporate purposes” and “provide a cushion against unexpected working capital requirements that may stem from fuel price and foreign exchange rate volatility”, the airline says in a same-day statement. The move comes on the back of Cebu Pacific’s Ps12.5b rights offering for convertible preferred shares, which began on 3 March. <br/>