200 Million Euro Bond Issue Successfully Placed by airBaltic

Latvian airline airBaltic on July 23, 2019successfully placed a 200 million euro issue 6.75 percent 5-year bonds becoming the largest corporate bond issue originating from Latvia. The transaction was well received by the international and local investor community resulting in a final allocation to more than 100 investors from 25 countries and the demand for the securities exceeded supply.

The airBalticmanagement team together with J.P. Morganand SEBbanks hosted a very well-attended six-day roadshow, meeting investors in all three Baltic capitals, London, Frankfurt, Zurich, Geneva and Helsinki.  

Martin Gauss, Chief Executive Officer of airBaltic said: “This is a historic milestone for our airline – not only have we issued the largest bond of any company in the history of Latvia, airBalticalso became the first airline in Central and Eastern Europe to access the international debt capital markets with a Eurobond offering. Investors have clearly shown that they see airBaltic's strategy as mature and strong. We will continue to executethe growth strategy outlined in our Destination 2025 business plan and we will significantly strengthen ourliquiditywith the issue of the bonds and continue investments into our fleet.”

Paulius Žurauskas, Head of DCMin SEB Balticssaid: “This transaction highlights solid support and recognition of airBalticcredit story from both regional and international investors. Baltic and Nordic investor community exhibited solid demand and this transaction paves way for future development Debt Capital markets in our region.” 

The settlement of the bonds is expected to take place on July 30, 2019. The bonds will be listed on Euronext Dublin stock exchange – one of the most recognised bond-listing venues globally.

airBaltic selected J.P. Morganas the global coordinator and together with SEB as the joint Bookrunners for its bond offering. The leading legal advisor of airBalticwas Dentonsas to matters of English law, and Cobaltadvised airBaltic as to matters of Latvian law. Linklaters advised J.P. Morganand SEB Bankas to matters of English law. 

On July 10, 2019 airBalticobtained a BB- preliminary credit rating with a stable outlook from the international credit rating company Standard & Poor’s.

airBalticis a well-established regional carrier that plays an important role in ensuring air connectivity to Latvia and the Baltics. According to a recent study by business strategy consultants Roland Berger, airBaltic directly and indirectlycontributed 2.5% to Latvia’s GDP in 2018 and supported close to 30,000 jobs. airBalticholds a leading position in the Baltic region, being the market leader at Riga Airport and an established presence at Vilnius and Tallinn Airports, and a competitive cost structure. airBaltic's primary shareholder is the Latvian state, which holds 80% of the stock, while Lars Thuesen holds around 20% through his fully-owned Aircraft Leasing 1 SIA.