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Brišken points out that the market demand for these securities has more than doubled the target amount.
The Minister of Transport emphasizes that issuing bonds will allow “airBaltic” to grow, namely by expanding the connectivity of Riga, increasing the fleet and entering new markets. “The next steps are the attraction of a strategic investor and the listing of the company’s shares on the Riga Stock Exchange,” added Briškens.
“Of the total amount of bonds, 290 million euros were purchased by private investors. The state purchased 50 million euros. The demand for securities exceeded the supply, with the value of the final orders exceeding 840 million euros,” Brišken writes on Twitter.
As the LETA agency was informed by the airline, “airBaltic” president and CEO Martins Gauss states that “with this successful bond issue, “airBaltic” has strengthened its position in the Baltic region by accessing the international debt capital markets using Eurobond offers”.
“The bond issue will be used to refinance our previously issued EUR 200 million bonds, confirming investors’ confidence in airBaltic’s qualitatively developed and convincing strategy. To further improve the company’s financial stability, this refinancing will significantly increase our liquidity, allowing us to continue investing in fleet expansion and modernization. This day marks a historic event for our airline”, stresses Gauss.
The bonds are expected to settle on May 14, 2024, and are scheduled to be listed on Euronext Dublin, one of the world’s most recognized bond listings, the airline said.
On the other hand, Prime Minister Evika Siliņa (JV) stated on Twitter that the airline “successfully implemented the largest corporate bond issue in the history of Latvia”.
The audited turnover of “airBaltic” last year was 664.289 million euros, which is 33.2% more than in 2022, and the company also made a profit of 33.852 million euros, in contrast to losses a year earlier.
The Latvian state owns 97.97% of “airBaltic” shares, while “Aircraft Leasing 1” owned by financial investor, Danish businessman Lars Tūsen – 2.03%.
