British Airways owner raises another €800mln as it prepares for flights to resume

0
16

British Airways owner IAG (LON:IAG) has chosen to go to Frankfurt for its latest round of fundraising.

The airline group is tapping institutions for €800mln through a convertible bond issue to help it as flying starts to recover from the pandemic.

A fixed coupon for the bonds will be set through a bookbuild process with the conversion price set to be a premium of roughly 45-50% to the current share price.

The bonds will be listed on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange. IAG will have the option to redeem all the bonds in 2026.

At the end of March 2021, IAG had total cash and facilities of €10.5bn but said that given the continuing uncertainty it wants to further strengthen its balance sheet and give it the flexibility to take advantage of a recovery in demand.  

IAG was among the airlines to express disappointment with the few numbers of countries on the UK green list announced last week and does not expect flights to recover in earnest until July.

LEAVE A REPLY

Please enter your comment!
Please enter your name here