Sydney Airport has cash to survive: chair

Sydney Airport has the cash to sustain its operations through the coronavirus crisis for an extended period of time, its chairman said.

Chairman Trevor Gerber is set to tell shareholders at the company’s annual general meeting on Friday that he expects the airport to remain compliant with its debt covenants and doesn’t forsee the need to raise additional equity.

“We will however continue to reflect on our capital structure and test our assumptions as we work through the recovery phase,” he will say, according to a copy of his speech lodged with the ASX.

The airport has already raised $850 million more in bank debt to weather the coronavirus crisis, which Mr Gerber is set to liken to two or three historical shocks rolled into one.

The airport has $1.5 billion in debt maturing in 2020 and 2021, but its $2.7 billion in liquidity “will comfortably cover these maturities if necessary” as well as its operating costs for some time, Mr Gerber will say.

The annual general meeting is set to begin at 1100 AEDT.

At 1043 AEDT, Sydney Airport shares were up 1.7 per cent to $5.685.

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