airBaltic Successfully Prices a 340 Million Euro Bond Issue

The Latvian national airline airBaltic has successfully priced a EUR 340 million issue of 14.50% 5.25-year (5 years and 3 months) senior secured bonds. This will be the largest corporate bond issue originating from Latvia. This transaction was well received by both the international and local investment communities, as well as the Latvian State, resulting in a final allocation to more than 100 leading global institutional investors from more than 20 countries across 3 continents. The demand for the bond exceeded the supply with the final orderbook surpassing EUR 800 million. 

The pricing follows an eight-day investor roadshow, during which the airBaltic management team met a large number of leading 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 settlement of the bonds is expected to take place on May 14, 2024, and the bonds are expected to be listed on Euronext Dublin stock exchange.

BNP Paribas, Citi and J.P. Morgan are acting as joint global coordinators and Morgan Stanley and SEB as joint bookrunners for the bond offering. LHV and Signet Bank are acting as co-managers.  The airline also appointed STJ Advisors and Superia as its joint independent financial advisors.

airBaltic operates more than 130 routes from Riga, Tallinn, Vilnius, Tampere and, seasonally, Gran Canaria offering connections to a wide range of destinations in the airline's route network in Europe, the Middle East, North Africa, and the Caucasus region.  A complete schedule of airBaltic flights and tickets are available on the company's homepage at www.airbaltic.com.