Latvian airline airBaltic emits bonds worth EUR 340 million

Latvian national airline airBaltic has emitted bonds worth EUR 340 million, as announced by Minister of Transport Kaspars Briškens on X (formerly Twitter) on Tuesday.
Briškens noted the market demand for those bonds exceeded the target amount by more than double the target amount.
The minister stressed that the emission of bonds will allow airBaltic to grow, expanding Riga’s connectivity, increasing the airline’s fleet, and allowing the exploration of new markets. “The next order of business is finding a strategic investor and listing of the company’s shares on the Riga stock exchange,” Briškens added.
“EUR 290 million worth of bonds was bought by private investors. The state acquired EUR 50 million worth of bonds. Demand for bonds exceeded demand, with the end value of demand exceeding EUR 840 million,” Briškens wrote on X.
As LETA was told by airBaltic CEO Martin Gauss, “with this successful release of bonds, airBaltic has reinforced is position in the Baltic region by accessing international debt capital markets through Eurobond offerings”.
“The emission of bonds will be used to refinance our previously emitted EUR 200 million bonds, affirming investors’ trust in airBaltic’s well-developed and convincing strategy. In order to further improve the company’s financial stability, this refinancing will significantly increase out liquidity, allowing us to continue investing into expansion and modernisation of our fleet. This day is a historic event for our airline,” stresses Gauss.
The bonds are expected to be settled on the 14th of May, 2024 and are scheduled to be listed on the Euronext Dublin Stock Exchange, one of the world’s most recognized bond listing sites, according to the airline.
Latvian Prime Minister Evika Siliņa wrote on X that the airline “has performed the biggest emission of corporate bonds in Latvia’s history”.
Last year, the audited turnover of airBaltic was EUR 664.289 million, which is 33.2% more than in 2022. The company made a profit of EUR 33.852 million, as opposed to a loss a year earlier.
The Latvian state owns 97.97% of airBaltic shares, financial investor, Danish businessman Lars Thuesen’ owned “Aircraft Leasing 1” owns 2.03% of shares.
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