The first tranche of Silk Way West Airlines bonds has been released

Silk Way West Airlines, the largest airline in the Caspian region, announces its first-ever bond issuance. Given that the company's main operations and revenues are in foreign currency, as well as the potential impact of the coronavirus pandemic on future indicators, it was decided to issue the bonds in US dollars.

Thanks to the improvement in conditions further to the easing of COVID-19 restrictions on aviation, flight numbers will continue to increase, leading to rising foreign exchange earnings and capacity for timely payment of the company's obligations.

Silk Way West Airlines bonds will yield 5% interest per year over three years, with the proceeds used for fleet renewal. The bonds are planned to be released in five tranches of USD 10 million each. The underwriter of the USD 1,000 bond is PASHA Capital, a leading investment company listed on the Baku Stock Exchange.

"When analyzing the airline's revenue and tonnage forecasts, we note that the expansion of the airline market will have a positive impact on business development, profitability through premium sales will increase faster than planned. All proceeds from the placement of the USD 50 million in bonds will be used to upgrade the Silk Way West Airlines fleet", said Dr. Mir Samad Movsum-zadeh, Member of the Supervisory Board of Silk Way West Airlines LLC.