Kuwait’s Jazeera Airways (Boursa Kuwait:JAZEERA) has renewed and enlarged its credit facilities with a local bank to KWD60mn ($193mn), it told Boursa Kuwait on October 15.
The low-cost carrier has already drawn KWD47.6mn of the facilities, leaving KWD12.4mn of headroom. That is a sharp rise in use since January, when Jazeera renewed facilities of KWD46.83mn with KWD28.69mn drawn. In between, the airline had to restart services from Terminal 5 after Kuwait International Airport was closed for 57 days.
The agreement covers commercial loans and letters of guarantee, with interest and commissions charged on the bank’s standard terms. Jazeera did not name the lender. It also gave no interest rate, repayment schedule or split between the two instruments.
The airline said the deal would have no immediate material impact on its finances. Any effect from drawing further on the Jazeera Airways credit facilities would show in later financial statements.
Jazeera Airways was founded in 2004 as Kuwait’s first privately owned airline. It flies a low-cost network from Kuwait across the Middle East, Central and South Asia, Africa and Europe, and runs its own Terminal 5 at Kuwait International Airport.