Finnair has confirmed repayment of a capital loan, with interest, to the Finnish government following a new share issue.

The carrier drew down the loan of €400 million ($437 million) last year.

Its share issue, conducted in November this year, raised gross proceeds of €570 million.

Finnair says the government – which holds a majority stake in the airline – participated in the issue, offsetting its €318.6 million payment against the loan.

The airline states that it has repaid the remaining principal of the loan, a total of €81.4 million, as well as interest and fees amounting to €48.9 million.

Finnair A350-c-Finnair

Source: Finnair

Finnair was granted the loan to support the airline through the Covid-19 pandemic

Finland’s loan to the airline had originally been a hybrid instrument, agreed in 2021, to support the carrier through the pandemic. It was converted to a capital loan last year.

Finnair carried out the share issue in order to reduce financing costs. It points out that, if the capital loan had not been repaid, it would have generated some €52 million in interest and fees next year.