Global Knafaim to raise equity for Tus Airways loan repayment

Israel’s Global Knafaim Leasing is injecting additional capital into Cypriot carrier Tus Airways, via a share issue, the lessor reveals in its Q3 financial statement. It says that the board approved the extra investment of $2m on 30 November. Investment partner Kenneth Woolley has similarly contributed in order to maintain the ownership balance in which Global Knafaim Leasing holds 49.9%. The lessor’s board has also approved additional investment of up to $1.5m, depending on what is needed, to the end of Q2 next year. Global Knafaim says that Tus is a relatively new “stand-alone” company and is being funded from continuing operations and owner investments, rather than external entities. The lessor is to undertake a rights offer to its shareholders amounting to some 21m shekels ($6m), with some of the proceeds to be used for the Tus investment. Global Knafaim had previously provided, in June, a loan of $2m to Tus with a term of two years unless the lessor embarked on a capital raise to repay it sooner. Tus Airways operates a fleet of five Airbus A320s, one of which has been operating as a wet-lease for another carrier until March next year.<br/>