Air Serbia managed to independently provide funds for the repayment of the long-term loan taken in 2015, which matured on September 28, thanks to responsible business before the coronavirus pandemic, as well as extensive austerity measures at all levels, the flag carrier said in a statement.
However, given the slow recovery of air traffic in Europe, Air Serbia will continue its active negotiations with its strategic partners, including creditors and strategic suppliers, in order to find a mutually acceptable solution for the repayment of its outstanding debt.
"The payment of this loan is proof of sound and responsible management of Air Serbia before and during the crisis, and during the recovery from the consequences of the pandemic. The Serbian national airline will remain committed to the interests of its shareholders, employees and passengers and will take all measures necessary to protect the company and ensure its successful development," said Duncan Naysmith, CEO of Air Serbia.
In June, Air Serbia notified EA Partners of a potential default under debt agreements signed with EA Partners I and EA Partners II, dated September 15, 2015, and May 20, 2016, respectively.
In September 2015, Etihad Airways closed a $700 million (590 million euro) secured bond to finance Etihad Airport Services, and equity partners airberlin, Air Serbia, Air Seychelles, Alitalia, and Jet Airways through EA Partners I. A $500 million platform financing transaction was completed by Etihad Airways, Etihad Airport Services, airberlin, Air Serbia, Air Seychelles and Alitalia in May 2016 through EA Partners II. The funds raised by the transactions were used largely for capital expenditure and investment in fleet, as well as for refinancing, depending on each individual airline's needs.
EA Partners was established in 2015 to allow Etihad Airways finance airlines in which it holds stakes. Etihad Airways incorporated two special purpose vehicles, EA Partners I and II, which sold bonds worth $1.2 billion to raise funds for several air carriers. The structure was designed to provide financing for the airlines while minimising the burden on the balance sheet of Etihad Airways.
The Abu Dhabi-based airline holds a 49% stake in the capital of Air Serbia, while the remainder is controlled by the Serbian government.
