Boeing (BA.US) is expected to raise up to 25 billion US dollars, and its stock price will rise more than 1.7%

The Zhitong Finance App learned that on Tuesday, Boeing (BA.US) said it may raise up to 25 billion US dollars by issuing new shares or debt to ease the pressure of huge losses over the years on its financial situation. The company also said it has reached a $10 billion supplementary credit agreement with several US banks. After the news was announced, Boeing's stock price rose 1.76% to $151.615.

Regulatory documents show that the company may strengthen its financial position by raising capital and reaching new loan agreements with lenders within the next three years.

Since the beginning of 2019, Boeing has lost more than $25 billion, and the company's finances are under fresh pressure as the strike of workers, which mainly produces airliners, enters its second month. The strike is affecting the company's cash flow. Boeing has spent more than 1 billion US dollars in cash. As of September, the total remaining cash and securities of the company was 10.3 billion US dollars.

On Friday, Boeing's new CEO Kelly Ortberg said the company would lay off about 10% of its workforce, equivalent to about 17,000 jobs, and delay plans to launch a new 777 large airliner. Due to the strike, production of Boeing's current 777 and its best-selling 737 Max aircraft has been forced to stop.