airBaltic cancels plans to issue bonds

Latvian national airline airBaltic has abandoned plans to issue bonds, as reported by the business news agency Bloomberg and newswire LETA on October 14.

According to Bloomberg, airBaltic joins several other European companies that have decided to postpone issuing bonds, concerned about persistently high-interest rates and geopolitical risks affecting the market.

In a statement distributed last week, the Latvian national airline said that the redemption conditions for bonds with a repayment term in July 2024 were not met. In September, airBaltic mentioned that the proceeds from the offer of new bonds could repay the company's existing bonds.

Last month, the airline announced that “JPMorgan Chase & Co.” and “Morgan Stanley” would hold a series of fixed-revenue investor meetings ahead of a possible five-year-term bond issue.

airBaltic does still plan to move forward with an Initial Public Offering (IPO) of its shares, which could start to be listed on the stock exchange in the summer of 2024 at the earliest, said Martins Gauss, chairman of airBaltic's board of directors, in an interview with Latvian Television. He also mentioned that airBaltic shares are planned to be listed on Nasdaq Riga, as well as on one of Europe's largest city exchanges.

The airline recently announced that it had appointed advisors for the future IPO. 

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