10 Jun 2020

Shareholder support for Wellington Airport

12:39 pm on 10 June 2020

The two shareholders in Wellington Airport have agreed to provide support for the airport as a response to the financial impact of the Covid-19 pandemic.

Wellington Airport departures

Photo: RNZ / Rebekah Parsons-King

Wellington City Council owns 34 percent of the airport company and assets investor, Infratil owns the remaining 66 percent.

Both will jointly provide an equity underwrite of up to nearly $75.76 million.

The council's share is $25.76m and Infratil $50m.

The facility will be able to be drawn by the airport, only if required, through the issue of redeemable preference shares.

It is not expected that there will be a need to draw down, but it is important to give WIAL's bankers comfort.

The council said the actions of the shareholders ensures the airport is soundly financed to meet all of its obligations and maintain the support of its lenders over the next two years as it recovers from the significant impacts of Covid-19 on the airline industry.

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