Latvian airline airBaltic successfully placed a EUR 200 million (USD 223.17 million) issue 6.75% five-year bond becoming the largest corporate bond issue originating from Latvia. The transaction was well received by the international and local investor community resulting in a final allocation to more than 100 investors from 25 countries and the demand for the securities exceeded supply.
The airBaltic management team together with J.P. Morgan and SEB banks hosted a well-attended six-day roadshow, meeting investors in all three Baltic capitals, London, Frankfurt, Zurich, Geneva and Helsinki.
“We will significantly strengthen our liquidity.”
Martin Gauss, CEO of airBaltic said: “This is a historic milestone for our airline – not only have we issued the largest bond of any company in the history of Latvia, 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.”
The settlement of the bonds is expected to take place on 30 July 30. The bonds will be listed on Euronext Dublin stock exchange – one of the most recognised bond-listing venues globally.
AirBaltic selected J.P. Morgan as the global coordinator and together with SEB as the joint bookrunners for its bond offering.