AirBaltic Raises €340 Million in Historic Bond Offering
Latvia’s national airline, AirBaltic, has achieved a significant milestone by issuing a €340 million senior secured bond. The bonds, which have a 14.50% interest rate and mature in 5 years and 3 months, represent the largest corporate bond offering ever from Latvia.
The transaction attracted significant interest from both international and local investors, including the Latvian State. The demand for the bonds exceeded supply, with the final orderbook reaching €800 million. The successful placement of the bond serves to refinance AirBaltic’s previously issued €200 million bond, demonstrating the trust investors have in the airline’s strategy.
Martin Gauss, President and CEO of AirBaltic, expressed his satisfaction with the bond issue, stating that it strengthens the airline’s position in the Baltic region and provides liquidity for continued investments. He also highlighted AirBaltic’s commitment to enhancing connectivity to and from the Baltics, improving the passenger experience, and contributing to the economy.
The bond settlement is anticipated for May 14, 2024, with plans for the bonds to be included on the Euronext Dublin stock exchange. AirBaltic currently operates over 130 routes from Riga, Tallinn, Vilnius, Tampere, and Gran Canaria, providing connectivity to numerous destinations across Europe, the Middle East, North Africa, and the Caucasus region.
