Airbnb has managed to secure $1 billion in the form of loans from institutional investors. The extra funds will come in handy as the home rental site seeks to boost its liquidity position amidst the coronavirus pandemic.
Additional funds will help support the business
Demand for accommodation has continued to fall over the last few weeks as citizens continue to remain at home to contain the spread of the virus. The additional funds will allow Airbnb to continue to invest in its company and community of hosts and guests in over 220 countries and regions around the world. Further, the organization 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 was able to secure a $1 billion investment from stakeholders. Brian Chesky, Airbnb Chief Executive said, “I deeply appreciate the confidence and trust that so many have shown in our company even as every sector in travel is going through the storm of the pandemic. We know travel will return and rather than merely hunkering down, the support we have received will allow Airbnb to continue moving forward as we invest in our community.”
He added, “All of the actions we have taken over the last several weeks assure that Airbnb will emerge from the storm of the pandemic even stronger, regardless of how long the storm lasts.”