Cebu Air has confirmed plans to raise up to US$500 million in additional capital to strengthen its balance sheet.

The carrier is seeking to ensure that it is positioned to recover from the impact of Covid-19.

The Philippines’ largest carrier gave notice to the Philippines’ stock exchange that it will be seeking approval for the issuance of up to US$250 million in new convertible preferred shares.

The carrier will also offer another US$250 million in privately placed convertible bonds.

It is hoped the deal will be completed by November 20th.

The new convertible preferred shares will be made available to all stockholders, including JG Summit, giving opportunity for all investors to participate; while the privately placed convertible bonds, will be made available to a limited number of reputable international investors.

“We need to create a longer runway for Cebu Air so that we can continue providing affordable and accessible air transport services for everyone,” said Lance Gokongwei, chief executive of Cebu Pacific and JG Summit Holdings.