Ryanair has issued a five-year, €1.2bn, Eurobond at a fixed coupon of 0.875%. Ryanair is rated BBB by both S&P and Fitch Ratings.
The bond will be listed on the Irish Stock Exchange (Euronext). "We are pleased with the success of our latest, low-cost, unsecured bond issue,” said Ryanair's Group CFO, Neil Sorahan. “This €1.2bn transaction, which was multiple times oversubscribed, was keenly priced at a coupon of 0.875%."
The joint bookrunners were BNP Paribas, Citigroup and Commerzbank.
Munawar Z. Noorani, Global Co-Head of Aviation at Citi, commented: “Ryanair is of course best in class, massive oversubscription and coupon levels below pre-Covid; bodes well for the industry. We see market optimism for the travel sector. Let’s hope it continues.”
Bonds are in vogue at the moment, with Finnair in them market, as well as SIA and ANA in Asia also planning issuances, with the latter opting for the sustainable-linked bonds. Green bonds are gaining interest from many airlines, but investors are reported to be demanding KPIs for aviation sustainability linked bonds that airlines are just not prepared for. Do contact me with your thoughts on green bonds and airlines - are airlines moving too soon and are unprepared for the realities of the demands made by green investors? Email me with your comments at victoria@airlineeconomics.com.