Flag carrier Air Canada has concluded two longer-term refinancing transactions worth approximately C$1.52bn ($1.13bn).

Comprising a committed secured facility of C$787.7m ($588m), the first transaction refinances the carrier’s acquisition of the first 18 Airbus A220 aircraft.

It comes with a 12-year term from each aircraft delivery on a floating interest basis.

With a combined aggregate face amount of $552.6m, the second transaction includes private placement of two tranches of Class A and B Enhanced Equipment Trust Certificates.

This financing was used to acquire equipment notes issued by Air Canada and secured by three Boeing 787-9 aircraft, three Boeing 777-300ER aircraft, one Boeing 777-200LR and nine A321-200 aircraft.

Air Canada managing director and treasurer Pierre Houle said: “These two refinancing transactions were completed in an extremely challenging environment and continue to demonstrate Air Canada’s ability to access financial markets on attractive terms and conditions to either improve liquidity or to refinance existing debt to push out maturities longer term and lower overall financial risk.”

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In May, Canadian Union of Public Employees (CUPE) revealed that Air Canada employees do not have the option to avail the federal government’s emergency Covid-19 benefits after expressing disappointment over the airline’s treatment towards its workers.

In July, US carrier Alaska Airlines raised approximately $1.2bn in debt financing to strengthen its financial position and balance liquidity amount amid the pandemic.