airBaltic emits bonds worth €200m

Take note – story published 4 years ago

Latvia's flag-carrier airline airBaltic has successfully emitted Eurobonds worth €200m, which according to airBaltic CEO Martin Gauss amounts to a historical step.

Gauss told LTV July 24 that the company has strengthened its liquidity with the successful sale of bonds to more than 100 investors from 25 countries. 

This will allow airBaltic to finance their upcoming aircraft purchases and invest into development.

airBaltic told the press that on July 23 the company successfully sold 5-year bonds worth €200m, at an interest rate of 6.75%. This is the largest bond transaction ever carried out by a Latvian company.

“airBaltic also became the first airline in Central and Eastern Europe to access the international debt capital markets with a Eurobond offering. Investors have clearly shown that they see airBaltic’s strategy as mature and strong. We will continue to execute the growth strategy outlined in our Destination 2025 business plan and we will significantly strengthen our liquidity with the issue of the bonds and continue investments into our fleet," said Gauss.

airBaltic selected J.P. Morgan as the global coordinator and together with SEB as the joint Bookrunners for its bond offering. 

On July 10, 2019 airBaltic obtained a BB- preliminary credit rating with a stable outlook from the international credit rating company Standard & Poor’s.

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