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HomeLatviaairBaltic prices a EUR 340 million bond issue

airBaltic prices a EUR 340 million bond issue

Latvian national airline airBaltic has issued bonds worth EUR 340 million, Transport Minister Kaspars Briskens (Progressives) announced in a tweet last night.

airBaltic said in a statement that it has successfully priced a EUR 340 million issue of 14.50 percent 5.25-year (5 years and 3 months) senior secured bonds.

Briskens points out that the market demand for these securities has more than doubled the target amount.

The Minister of Transport stresses that the issuance of the bonds will allow airBaltic to grow by expanding Riga’s connectivity, increasing its fleet and entering new markets. “The next steps are to attract a strategic investor and list the company’s shares on the Riga Stock Exchange,” Briskens added.

“Of the total bond amount, EUR 290 million was purchased by private investors. The state purchased EUR 50 million. Demand for the bonds exceeded supply, with final orders worth more than EUR 840 million,” Briskens tweeted.

As LETA was told by the airline, the settlement of the bonds is expected to take place on May 14, 2024, and the bonds are expected to be listed on Euronext Dublin stock exchange.

“With successfully priced bond issue, airBaltic has strengthened its position in the Baltic region by accessing international debt capital markets through its eurobond offerings,” said airBaltic CEO Martin Gauss.

”The successful placement of this bond serves to refinance our previously issued 200 million eurobond, demonstrating the trust investors have in airBaltic’s strategy. This refinancing will substantially boost the company’s liquidity and financial stability allowing us to continue our investments in expanding and modernizing our fleet. This marks a historic milestone for our airline,” Gauss emphasized.

Prime Minister Evika Silina (New Unity) tweeted that the airline had “successfully implemented the largest corporate bond issue in the history of Latvia”.

Last year, airBaltic’s audited turnover was EUR 664.289 million, up 33.2 percent on 2022, and the company made a profit of EUR 33.852 million, compared to a loss the year before.

The Latvian state owns 97.97 percent of airBaltic’s shares, while the financial investor, Danish businessman Lars Thuesen’s Aircraft Leasing 1, owns 2.03 percent.

Source: BNS

(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited.)

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