Finnair and the State of Finland signed an agreement on a hybrid loan of maximum 400 million euros to support Finnair due to the COVID-19 pandemic in March 2021. The arrangement has the approval of the EU Commission’s competition authority in line with the European Union’s state aid rules and, therefore, the entire amount of 400 million euros is available for Finnair to use.
In its meeting on 19 April 2022, the Ministerial Committee on Economic Policy supported the conversion of the hybrid loan instrument to a capital loan that is deemed an equity instrument. The capital loan will strengthen the equity of Finnair Plc, Finnair Group’s parent company. Granting of the capital loan requires an approval by the Plenary Session of the Government as well as a state aid decision by the EU Commission.
Finnair is able to access the funds, when Finnair Plc’s cash or equity position drops below the limits that have been defined in the facility’s terms and conditions.