The bond circulation period is 5.25 years, the yield is 14.5 percent. They will be listed on the Dublin Stock Exchange, the company said.
In turn, the Minister of Transport of Latvia, Kasparas Briškens, announced that the state purchased these securities for 50 million. euros, and for 290 million they were bought by private investors.
“Demand for bonds exceeded supply more than twice, the final value of orders exceeded 840 million. euros”, said the minister.
Latvian Prime Minister Evika Silinia stated that she was “not worried” about the high yield of these securities.
In an interview with Latvian TV3 on Wednesday, the head of the government said that most of the issue was distributed in cooperation with big banks, so there is no reason to compare it with failed historical examples.
As already announced, Air Baltic is planning an initial public offering (IPO) in the second half of the year, but by then it must refinance 200 million. euro issue of bonds issued in 2019, the circulation period of which will end in July.
97.97 percent Air Baltic’s shares are owned by the Latvian state, the rest by Danish investor Lars Thuesen’s company Aircraft Leasing 1.
Source: BNS
