Fiji Airways today assured the Standing Committee on Social Affairs that it is fully compliant with all loan obligations, including major financing from the Fiji National Provident Fund and the Fiji Development Bank.

During a presentation on the airline’s 2023 Annual Report, Chief Executive Andre Viljoen and Board Chair Nalin Patel responded to questions about the company’s outstanding debt and repayment schedule.

Patel says Fiji Airways repaid about 100.4 million dollars in loans during the 2023 financial year, and refinanced 95 million dollars of higher-interest foreign debt through cheaper domestic borrowing.

He says as of July 31st this year, the airline’s total debt had been reduced to 678 million dollars, down from 722 million earlier in the year.

Patel adds the company also secured 150 million dollars in new loans during the same period to support ongoing operations and strategic expansion.

[Source: Parliament of the Republic of Fiji/Facebook]

Committee member Parveen Bala raised questions about the airline’s loan arrangements with FNPF.

The airline’s outgoing CEO Andre Viljoen confirms capital repayments have now commenced.

“These loans from FNPF are highly securitized. In fact, they’re over-securitized by almost three to one. So, from FNPF’s perspective, they’re very well secured and very comfortable with the debt. During COVID, a three-year capital moratorium was placed. That’s now ended and we’ve started to pay off the capital.”

Viljoen says similar terms were applied to the 75 million dollar loan from the Fiji Development Bank, which also had its principal payments deferred during COVID-19.

He says FDB financing was under moratorium during the pandemic, and capital repayments have now resumed as agreed.

Airline Chair Nalin Patel reassured the committee that Fiji Airways has not defaulted on any repayment terms to any lender, including FNPF and FDB.

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