Sydney Airport has secured an additional $850 million in bank debt facilities and says it will not pay an interim dividend for the half-year that ends in June.
The airport says with the new financing it has $2.8 billion in total liquidity, giving it plenty of headroom to pay its $1.3 billion in maturing debt and $150 million to $200 million in expected capital expenditure during the next 12 months.
“Given the strength of our balance sheet and liquidity position, at this time we do not see the need to raise equity,” the airport said.
The airport may also undertake some non-critical projects “that would take advantage of the fact that the terminals, facilities and airfield are largely dormant”.
For the first 16 days of April, international traffic was down 96.1 per cent and domestic traffic down 97.4 per cent,
The airport said it was working with its retail, aeronautical and commercial partners and tenants “to reach outcomes that represent a fair and equitable sharing of the pain”.
“The entire industry is hurting but we are all in this together and we are working closely with our airline and commercial partners to make sure everyone has the best shot of making it through to the other side,” chief executive Geoff Culbert said.
Mr Culbert and the airport’s board of directors are taking a 20 per cent pay cut for the three months from April to the end of June.