Finnair Plc (the “Company”) issues new euro-denominated in aggregate EUR 200 million capital securities (the “New Capital Securities”). The New Capital Securities will bear interest at a fixed interest rate of 10.250 per cent per annum until the step-up date of 3 September 2023 (“Step-up Date”) and thereafter, the fixed interest rate will be 15.250 per cent per annum. The New Capital Securities do not have a specified maturity date but the Company is entitled to redeem the New Capital Securities at par on any day during the three (3) month period prior to and including the Step-up Date, and subsequently, on each annual interest payment date thereafter. The issue date is expected to be on or around 3 September 2020.

The Company is not required to redeem the New Capital Securities at any time and they are not redeemable on demand of the holders of the New Capital Securities. Interest accrues on the New Capital Securities and becomes payable in accordance with terms and conditions of the New Capital Securities. The New Capital Securities constitute subordinated obligations of the Company and will be treated as equity in the Company’s consolidated financial statements prepared in accordance with IFRS. The New Capital Securities do not confer their holder the rights of a shareholder nor do they dilute the holdings of the current shareholders.

Refinancing of the existing hybrid bond further supports our balance sheet strength”, says Finnair’s CFO Mika Stirkkinen. “In addition to the support of our shareholders as demonstrated by our successful rights issue, we maintain a diversified investor base by using equity instruments, such as the hybrid bond, as we seek to mitigate the impacts of the COVID-19 pandemic on our capital structure”.

Application will be made for the New Capital Securities to be admitted to trading on the official list of Nasdaq Helsinki Ltd. The proceeds of the offering will be used, on or about the issue date or shortly thereafter, for the financing of the redemption of the Company’s existing capital securities.

Citigroup Global Markets Limited, Nordea Bank Abp and OP Corporate Bank plc acted as Joint Lead Managers of the issue of the New Capital Securities (the “Joint Lead Managers”).