Fiji Airports (FA) says its $106 million loan package with the guarantee from Australian Infrastructure Financing Facility for the Pacific (AIFFP) has been undertaken “without the need or request for a Fijian Government guarantee”.
Political leaders Professor Biman Prasad, Mahendra Chaudhry and Viliame Gavoka have this week criticised the FA for taking up the loan at this time.
“This facility has been undertaken without the need or request for a Fijian Government guarantee,” said FA chairman Geoffrey Shaw, adding it “has no foreign exchange exposure”.
“Fiji Airports has independently and exclusively secured this finance as a stand-alone commercial facility.
“The finance providers well recognised the commercial strength of Fiji Airports in a normal trading environment, which in itself enabled this deal structure.
“They understand and have faith in our capacity and ability to both service the debt and pay down the principal once we recommence normal operations post international borders reopening.”
Mr Shaw said negotiations for the loan began in July 2020.
“This loan facility is a commercial undertaking by Fiji Airports for our capital works projects, previously committed and to a greater degree, well-advanced under construction.
“The loan facility provides certainty for the future wellbeing of Fiji Airports as a major contributor to the Fijian economy.”
