The Fiji National Provident Fund says Air Pacific Limited (Fiji’s National Airline) will commerce repayment of principal from 1 January 2024.
This has been highlighted in the 2023 Annual Report for the Fiji National Provident Fund.
FNPF said that Air Pacific Limited continues to pay interest only as per its contractual obligations after repayment holidays were approved due to the COVID-19 pandemic.
According to FNPF’s Financial Statements, the FNPF owns 30 per cent of the National Carrier, which is worth over $168.1 million for 2023, an increase from $93 million acquired the previous year.
They said the Fund’s investment in the airline is a remarkable 80 per cent increase from the initial acquisition cost of $93 million.
FNPF said this is a monumental gain, constitutes a substantial 20 per cent share of the total income generated within the equity investment portfolio.
In addition to the fair value gain, the Fund continues to receive interest income on its loan to Fiji Airways, which amounts to $16 million compared to $13 million for 2022, an increase of 20 per cent.
Also, the Fund has highlighted that repayment holidays previously approved for several hotel loans due to the COVID-19 pandemic ceased during the year, with commencement of repayment of interest.
The Fund’s exposure to Fiji Airways is currently maintained at a reassuring and manageable level and the overarching strategy prioritizes portfolio diversification, a strategy that yielded a commendable return on investment of eight per cent during the 2023.
They said moving forward, the Fund will remain committed to exploring further opportunities with Fiji Airways, with a primary focus on ensuring a sustainable return on member’s fund.
“This exploration is set to revolve around the strategic alignment and synergies between the airline and the Fund’s hotel portfolio, fostering a cohesive, profitable investment strategy.”
