Spanish leisure carrier Air Nostrum has made an early repayment of €20 million to SEPI, Spain’s state-owned industrial holdings corporation, for funds accessed during the pandemic.
The repayment, which was completed on Monday (December 29), reduces the principal of the €111 million participating loan granted to the airline using FASEE funds.
The Funds to Support the Solvency of Strategic Companies (FASEE) were created to offset the impact of the pandemic on the balance sheets of solvent companies considered “strategic” to Spain’s national economy.
In 2020, Air Nostrum lost €140 million after being forced to suspend all flights for several months, and to operate for the remainder of the year with restrictions on flight occupancy and network.
The loan was approved on May 31, 2022, after a 13-month analysis of Air Nostrum's economic and legal situation.
During this period, SEPI and its advisor Grant Thornton reviewed the viability plan submitted by the company.
Following a restructuring of the amortisation schedule without debt forgiveness in December 2024, it was agreed that the entire principal and remaining interest would be repaid in a single payment in 2028.
After today's early repayment, the outstanding principal has been reduced to €91 million.
In total, Air Nostrum has paid SEPI €20 million in principal and €21.6 million in interest corresponding to the FASEE loan.
During 2020, Air Nostrum also took out €133 million in loans backed by the Instituto de Crédito Oficial (ICO), Spain's state-owned bank and financial agency, signed with both commercial banks and the ICO itself.
Of these loans, the company has already repaid €75 million in principal and €23.6 million in interest.
The total amount amortised by Air Nostrum to date, corresponding to the financial obligations contracted by the company during the pandemic, now stands at €140.2 million.