Airbnb secures additional $1 billion in loans

Thursday, April 16, 2020

Airbnb recently secured another $1 billion in loans from institutional investors. The cash arrives amid the coronavirus pandemic as the company seeks to boost its liquidity position. The accommodation service body said in a statement that the new resources will ensure Airbnb can continue to invest in its company and community of hosts and guests in over 220 countries and regions across the globe.

With regard to the global travel restrictions and stay-at-home orders issued by governments across the world to curb the spread of the COVID-19 pandemic, demand for accommodation and hotel occupancy has seen a sharp plunge all around the world.

Therefore, Airbnb is raising cash by issuing first-lien debt, which has priority on the assets of the company in case of a default. Earlier this month, the company has also secured a $1 billion investment from stakeholders.

Brian Chesky, Chief Executive, Airbnb said in a recent press statement that the company deeply appreciates the confidence and trust that so many have shown at a time when every sector in travel is going through the storm of the pandemic. He mentioned that travel will return after the trying times are over and the support will allow Airbnb to continue moving forward while investing in the community.

He further informed that all actions that the company has taken over the last few weeks assure that Airbnb will emerge from the storm of the pandemic even stronger, regardless of how long the struggles last.

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