WOW air hope to secure capital for the company
WOW air who reported losses this summer are hoping to secure capital for the company. Morgunblaðið sources report that the company is hoping to secure at least 50 thousand USD in consultation with financial firms by issuing bonds.
WOW Air owner’s equity amounted to USD 14 million at the end of June, compared with USD 40 million at the end of last year. The financing phase is expected to be completed by the end of August. The issuing of bonds will be led by the Norwegian investment bank Pareto Securities.
According to Morgunblaðið sources the government is following WOW's state of affairs closely and have met over the matter.
The Icelandic krona has fallen in value in recent days and for example has fallen by 5.63 % compared to the British pound. The Central Bank of Iceland confirmed to mbl.is yesterday that they had intervened on the exchange market yesterday due to the falling krona.
Speaking to Morgunblaðið, analysts say that this development can be traced to the market's fear that tourist numbers to Iceland will fall in coming months, especially the unclear news of the WOW air situation.