State of Finland preparing to make hybrid loan of €400 million available to Finnair

Finnair ©AirTeamImages

The State of Finland is preparing to make up to €400 million available to Finnair in the form of an unsecured hybrid loan. The final decision on the possible financing arrangement is subject to a decision by the Government Plenary session, which will also confirm the final terms and conditions of the loan. The hybrid loan requires approval by the EU Commission.  

Finnair’s equity as of the end of the third quarter 2020 was €940 million and cash reserves were €725 million. The facility will be structured so that Finnair is able to access the funds, if its cash or equity position would drop below the limits to be defined in the facility’s terms and conditions.  (€1.00 = US$1.21 at time of publication.)

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