Honeywell borrows further $1.5 billion

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FILE PHOTO – A logo of Honeywell is pictured on their booth during the European Business Aviation Convention & Exhibition (EBACE) in Geneva, Switzerland, May 22, 2017. REUTERS/Denis Balibouse

(Reuters) – Honeywell International Inc (HON.N) said on Friday it had entered into a $1.5 billion loan agreement to be used for general corporate purposes.

The 364-day Credit Agreement was signed with Citibank (C.N) and JPMorgan Chase (JPM.N), Honeywell said in a filing, adding that the loan does not does not restrict its ability to pay dividend.

The agreement comes after the industrial conglomerate entered into a $6 billion loan agreement last month to bolster liquidity as the fast-spreading coronavirus pandemic wreaks havoc on the global economy.

The company, which makes everything from aircraft engine parts to warehouse automation equipment, had $10 billion in cash at the end of 2019, with its pension liability overfunded, it said last month.

Honeywell has reported a surge in demand for its protective face masks in North America, Europe, India and China, following the novel coronavirus outbreak.

Reporting by Noor Zainab Hussain in Bengaluru; Editing by Sandra Maler

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