Japan's Skymark to raise $36m from DBJ, ANA and other shareholders

Japanese budget carrier Skymark Airlines is preparing to raise 4b yen ($36m) from shareholders, Nikkei has learned, as it aims to strengthen its finances and recover from the impact of the coronavirus pandemic. The company will raise capital from investment fund Integral and the government-backed Development Bank of Japan, as well as ANA Holdings, all of which hold a stake in the carrier. As early as August, Skymark will raise 2b yen through a shareholder allocation, and another 2b yen in subordinated loans. It appears that the subordinated loans, which will be financed by the DBJ, will be fully recognized as equity for rating purposes. Integral, which is Skymark's largest shareholder, with a stake of 50.1%, is expected to underwrite about 1b yen while a fund created by DBJ and Sumitomo Mitsui Banking Corp. will be responsible for about 670m yen. ANA will underwrite about 330m yen. SMBC and Mizuho Bank have lent Skymark 30b yen in syndicated loans. The loans are due at the end of July but the banks have agreed to refinance. The move by the discount airline comes amid a sharp fall in air travel due to the pandemic, with various airlines struggling to keep afloat. <br/>