Acsa seeks Treasury support to finance R11bn new debt by 2025
CAPE TOWN - South African airports operator Airports Company SA (Acsa) needs Treasury support to finance up to R11 billion of new debt by 2025, the state-owned company said on Monday.
Since late March when South Africa declared a state of disaster to contain the new coronavirus, major domestic airports such as the continent’s busiest OR Tambo in Johannesburg have closed, knocking revenue at Acsa.
African airlines could lose $6bn (R110bn) in passenger revenue in 2020, the International Air Transport Association said last month.
“New debt of R10bn to R11bn is required in the next five years and this will require shareholder support in the form of government guarantees,” A saidcxa in a presentation to lawmakers.
The operator, which also holds concessions at Sao Paulo’s Guarulhos International Airport and Chhatrapati Shivaji International Airport in Mumbai, said about R3bn in guarantees would be required over the next three years.
Between 2021 and 2023 its capital expenditure budget is seen at R17.9bn as it develops major projects, such as a new runway and terminal at Cape Town airport, Acsa said.
In March ratings agency Moody’s downgraded Acsa to Ba1 from Baa3 with a negative outlook as expected passenger traffic was seen falling by at least 30 percent in the financial year to March 2021.
Struggling state-owned companies including bankrupt national airline SAA and power utility Eskom rely heavily on government bailouts, which are straining tight public finances as Africa’s most industrialised economy faces the prospect of a prolonged recession.