airBaltic successfully distributed 340 mln. issue of bonds worth EUR

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Riga. The Latvian airline company “airBaltic” successfully distributed 340 mln. 14.50 percent of the euro value. Issue of 5.25-year (5 years and 3 months) senior secured bonds. This will be the largest issue of Latvian corporate bonds. The deal was welcomed by both the international and local investment community, as well as the Latvian government, resulting in the distribution of the final issue to more than 100 large global institutional investors from more than 20 countries on 3 continents. Demand for the bonds exceeded supply, with the final order book exceeding $800 million. euros.

The final price of the bond offering was revealed after an eight-day investor presentation, during which airBaltic’s management team met with a number of leading global institutional investors.

“After successfully distributing the bond issue, airBaltic strengthened its position in the Baltic region and, by offering Eurobonds, entered the international debt capital markets. The successful distribution of this bond helps to refinance the previously issued 200 million. EUR worth of Eurobonds and shows investors’ confidence in airBaltic’s strategy. This refinancing will significantly strengthen the company’s liquidity and financial stability, so we will be able to continue investing in the development and modernization of the aircraft fleet. This is a historic milestone for our airline,” said Martin Gauss, President and CEO of airBaltic.

“Looking ahead to 2024, we continue to make good progress towards a potential initial public offering (IPO). Our main goals do not change – to ensure the best connections to and from the Baltic countries, improve passenger experience and fundamentally contribute to economic growth,” added M. Gaussas.

The final settlement of the bonds is planned to take place in 2024. on May 14, the bonds will be listed on the Euronext Dublin stock exchange.

BNP Paribas, Citi and JP Morgan are acting as joint global coordinators and Morgan Stanley and SEB are acting as joint underwriters. LHV and Signet Bank act as joint managers. The airline has also appointed STJ Advisors and Superia as joint independent financial advisors.

airBaltic flies to more than 130 destinations in Europe, the Middle East, North Africa and the Caucasus region from Vilnius, Riga, Tallinn, Tampere and, seasonally, Gran Canaria. The entire airBaltic flight schedule and tickets can be found on the company’s website at www.airbaltic.com.

About airBaltic:

airBaltic (Air Baltic Corporation AS) was founded in 1995. a joint stock company was established. Its main shareholder is the Latvian state, which owns 97.97 percent. shares, and for other shareholders – 2.03 percent. airBaltic offers flights to more than 70 cities in Europe, the Middle East, North Africa and the Caucasus region. Over the past 28 years, airBaltic has become a strong and internationally recognized airline with more than 2,500 employees. AirBaltic’s fleet consists of 47 Airbus A220-300 aircraft, making this fleet one of the youngest in Europe. The airline has received international awards for excellence, innovative services and significant achievements. For two years in a row, Skytrax has awarded airBaltic as the best airline in its region. In addition, in 2022 The International Air Transport Association (IATA) awarded the diversity and inclusion team of airBaltic. in 2023 the airline received the APEX Passenger Choice award for the best cabin service in Europe.

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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 order book 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 GaussPresident 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, Others and JP 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.