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British Airways and Aer Lingus owner IAG raised Є1.2 billion ($1.43 billion) in a bond issue. The company explained the raised funds would help it get through the rest of the pandemic.
Originally, IAG planned to raise Є1 billion, but the demand was higher than expected, enabling it to raise Є1.2 billion. According to IAG, the proceeds can be used to cope with a continuous downturn or provide “flexibility to take advantage of a recovery in demand for air travel.”
The senior unsecured bonds were issued in two sets. The airline group confirmed further details, with Є500 million of Series A bonds due in 2025 and Series B Є700 million due in 2029. According to Reuters, They were priced at a yield of 2.75% for the first tranche and 3.75% for the second one. The settlement will take place on March 25.
Despite an intense cost-trimming program, IAG is still burning through €185m a week due to the questionable travel reboot.