Jet2 plc will go ahead with the issuance of GBP200 million pounds (USD278.55 million) worth of commercial paper after it was recently re-confirmed as an eligible issuer for the Bank of England's COVID Corporate Financing Facility (CCFF). Unveiled last year, the CCFF provides funding to businesses by purchasing commercial paper of up to one-year maturity, issued by firms making a material contribution to the UK economy. The facility offers financing on terms comparable to those prevailing in markets in the period before the Covid-19 economic shock and is open to firms that can demonstrate they were in sound financial health prior to the onset of the pandemic.
As such, the parent of Jet2 (United Kingdom) (LS, Leeds/Bradford) and Jet2holidays said last week that the UK Treasury had confirmed it did meet the updated pre-Covid investment grade requirement and that it will therefore issue the full amount of commercial paper through the CCFF prior to the closure of the scheme on March 22, 2021. Proceeds will be used to provide standby liquidity if required.
"Our liquidity position is strong," Philip Meeson, Executive Chairman, commented. "The Group's cash position as at March 7, 2021 (with the CCFF undrawn) comprised unaudited Total Cash of GBP1.189 billion (USD1.656 billion) and 'Own Cash' of GBP892 million (USD1.24 billion) (excluding advance customer deposits), having already proactively returned over GBP1.2 billion (USD1.67 billion) of customer deposits since the start of the pandemic."
Meeson added that with London's recent decision to partially lift travel restrictions from mid-May, Jet2 had seen "a notable increase in bookings for Summer 2021" and though still early, was encouraged by the volume of customer bookings for both Winter 21/22 and Summer 2022.
