(Reuters) – Air New Zealand Ltd announced Wednesday that it will raise NZ$2.2billion ($1.53billion) to replenish its pandemic-hit financial position and pay a NZ$2billion government-liquidity package as New Zealand’s border reopens.

This equity capital raise will involve a rights issue, redeemable shares, and a total of NZ$1.8 Billion. NZ$850 M will be used for repayment of outstanding New Zealand debts.

The carrier stated that the remaining NZ$950million will be used to increase the balance and assist recovery from COVID-19-related ravages. To provide liquidity, it has taken out a new debt from NZ$400million.

Last month, the carrier stated that NZ$760m was taken from a NZ$1billion loan by the government. However, it has yet to redeem NZ$1billion worth of shares.

Air New Zealand’s worst-ever annual loss was also due to the Auckland lockdown, expired government relief programmes, fuel price increases, and an international boundary closure.

International borders have reopened and the carrier is seeing some sales improvement. The company now expects an annual loss before taxes and major items of less than NZ$800million, which is lower than the previous forecast.

It logged an underlying loss before tax and one-off charges of NZ$440 million last year http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/AIR/377956/353175.pdf.

After more than two decades of COVID-19 isolation, the government opened international borders earlier in this month to allow for some travelers.

The economy has suffered from the closure of borders, which have reduced the availability of labourers from the Pacific countries and limited air transport options. This also halted international tourism.

New Zealand’s most important source of tourism, Australia, is allowed to travel without having to be vaccinated. They can now enter the country from Australia starting April 12 and not July, as was previously planned.

Visitors from Visa-Waiver Countries, including Britain, Singapore and the United States will be allowed to enter from May 1st.

$1 = 1.4366 New Zealand dollar