The European Investment Bank has agreed to Isavia’s drawdown of EUR 40 million (ISK 6.3 billion). The amount in question is the final drawdown on a loan amounting to EUR 100 million that the bank granted the company in 2018 for developments at Keflavik International Airport. This funding is in addition to the ISK 4 billion share capital increase from the Icelandic government which was directly related to specific investment projects at Keflavik International Airport. In total, therefore, Isavia has secured more than ISK 10 billion in new funding since flights to and from Iceland more or less ceased due to the COVID-19 pandemic.
“It is a pleasure to see the European Investment Bank showing continued support for the development of Keflavik International Airport during the present unsettled conditions,” says Bjarni Benediktsson, Minister of Finance and Economic Affairs. “The Bank´s decision clearly shows its willingness to be supportive of projects that provide direct backing to the restoration of the Icelandic economy.”
“It is of great importance to have achieved this agreement with the bank, particularly in light of the uncertain development of air travel in the near future. We have, during past weeks and months, sought means to ensure access to funding with the goal of supporting Isavia’s activities until the company’s cash flow becomes positive again” says Sveinbjörn Indriðason, CEO of Isavia. “Nevertheless, the situation at present remains extremely uncertain although the decision of the European Investment Bank makes it possible for us to continue with our current projects and provides us with valuable flexibility for continued activities.”