AirBaltic’s EUR 340 Million Bond Sale Marks Milestone for Latvia

Wednesday, May 8, 2024

AirBaltic, Latvia’s national airline, has successfully launched a EUR 340 million senior secured bonds issue at a 14.50% interest rate, maturing in 5 years and 3 months. This marks the largest corporate bond offering ever from Latvia. The transaction garnered significant interest from both international and local investors, including the Latvian State, leading to allocations to over 100 major institutional investors worldwide, spanning 20 countries across 3 continents. Demand for the bonds exceeded supply, with the final orderbook reaching EUR 800 million. The pricing came after an eight-day investor roadshow where airBaltic’s management engaged with numerous global institutional investors.

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

“Looking ahead to 2024, we continue on our successful course towards the potential initial public offering (IPO). Our core objectives remain unchanged – to ensure the best connectivity to and from the Baltics, as well as to enhance the passenger experience and deliver a fundamental contribution to the economy,” Gauss added.

The bond settlement is anticipated for May 14, 2024, with plans for the bonds to be included on the Euronext Dublin stock exchange.

airBaltic manages over 130 routes from Riga, Tallinn, Vilnius, Tampere, and seasonally from Gran Canaria, providing connectivity to numerous destinations across Europe, the Middle East, North Africa, and the Caucasus region within its route network.

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