Stelios uses EasyJet shares as collateral to secure a £5m loan

EasyJet owner Sir Stelios Haji-Ioannou has raised £5m by using shares as collateral for a loan.

An unnamed lender accepted 1.27m shares as collateral in a deal arranged by UBS. The arrangement mirrors a deal in September, when Stelios raised £7.5m by using 2m shares as collateral on a loan through Credit Suisse.

EasyGroup has protected the value of the investment by retaining the value of shares between 477p and 362p. If EasyJet deviates from that range Stelios, who owns 27 per cent of the company, will give up the value of the shares.

The news comes after Stelios announced yesterday he is to sue Ryanair boss Michael O’Leary.