With positive prospects from the issuance of bonds to raise capital, Boeing said it would not need US $ 2,000 billion bailout package of the US government.
Boeing said it could successfully raise $ 25 billion by issuing bonds to cover the difficulties caused by the Covid-19 pandemic. With this capital, the company does not need US federal assistance for businesses worth $ 500 billion, as part of a $ 2,000 billion relief program.
Boeing and a number of airlines have experienced an unprecedented crisis due to sluggish travel demand due to the Covid-19 pandemic. The aerospace giant faces severe financial difficulties as income declines severely, with virtually all international commercial flights canceled.
On April 30, the world’s largest aircraft maker said it would not need US federal government bailouts after receiving a guaranteed $ 25 billion bond offering.
The company said the issuance will be divided into 7 phases, with the bond term from 3 to 40 years. “Through the feedback and pending transactions ending Monday, 4/5, we think that there will be no need to apply for additional funding through capital markets or relief funds. US government at this time, ”the Boeing statement said.
A pandemic caused US airlines to face mounting difficulties, being forced to propose US $ 60 billion in aid from the US federal economic bailout package for the company and huge supply chains like General Electric and Spirit Aerystems.
However, since the end of last month, CEO David Calhoun said that the company will not receive a bailout package from the US government if the US Treasury Department requests to trade with its shares.
According to Fox Business, the bill is still in the process of revising but there is a content that will be similar to the rescue package for banks in the 2008 financial crisis. Accordingly, to receive the $ 60 billion support package, Boeing will must accept for the US Treasury Department to own some shares of the firm.