Finnair obtains E570m including loan offset from new share issue

Finnair has revealed that its rights issue – which was slightly oversubscribed – has raised just over E570m in gross proceeds, including a E318m commitment from the Finnish government. Net proceeds from the issue are around E558m. The carrier had disclosed plans for a new share issue in October, intending to use the proceeds to repay a capital loan and cut financing costs. Provisional results from the offering, which closed on 17 November, indicate demand for just over 19b shares – of which 95% came from exercise of subscription rights. The Finnish government’s contribution will offset an equivalent sum from a capital loan and, as a result, will not generate gross cash proceeds for the airline. Of the total net figure raised, around E240m will be cash. The carrier says that, along with lower financing costs, the share issue will reinforce its position and help support its strategic efforts to reach sustainable profitability. Finnair’s overall share circulation will increase to about 20.4b.<br/>