Following rival JAL Group, which successfully raised JPY182.7 billion yen (USD1.5 billion), ANA Holdings has announced it will hold a share offering of its own aimed at raising JPY332 billion (USD3.2 billion).
A stock exchange filing said it would offer 126,310,000 common shares of which 91,310,000 have been allocated to Japanese investors. Another 30,440,000 common shares have been reserved for foreign investors who can also access a further 4,560,000 additional shares upon exercise of the option.
Of the net approximate total amount of JPY332.1 billion it expects to secure, ANA said that JPY200 billion (USD1.92 billion) would be used through March 31, 2023, for capital expenditure for medium to long-term growth, including the acquisition of B787-9 and B787-10 aircraft critical to its fleet renewal drive. Any remainder will go to the repayment of long-term debt through March 31, 2023, to strengthen ANA’s financial soundness for enhanced risk tolerance.
The latest fundraising plan comes on top of the JPY400 billion (USD3.842 billion) in subordinated loans the holding has already secured from major Japanese banks.
The ANA - All Nippon Airways (NH, Tokyo Haneda) parent has forecast a record operating loss of USD4.82 billion for the year through March 31, 2021, due to the COVID-19 pandemic. Last month, it unveiled a JPY400 billion cost-cutting plan that will see its mainline carrier retire “large-sized” aircraft including 35 aircraft in 2020 of which 22 will be B777s. ANA's widebody fleet currently entails twenty-three B767-300ERs, seven B777-200s, twelve B777-200ERs, seven B777-300s, twenty-eight B777-300ERs, thirty-six B787-8s, thirty-six B787-9s, two B787-10s, and two A380-800s.
