Ryanair Euro Bond ‘eight times over-subscribed’
Ryanair has issued its first ever Euro Bond, worth €850 million at an interest rate of 1.875%, fixed for seven years, as part of its plan to access the debt capital markets to source cheap financing for its 180 new Boeing 737s.
Deliveries of the new aircraft start in September and will enable Ryanair to grow by 40% over the next five years to over 110 million passengers per annum.
The Irish-based airline already carries more international passengers than any other airline in the world, according to figures released this week by the International Air Transport Association.
The Euro Bond will be listed on the Irish Stock Exchange, which offers access to investors in both Europe and the rest of the world.
The airline said it was more than eight times over-subscribed, with investors attracted by Ryanair’s BBB+ ratings from Standard & Poor’s and from Fitch, making it the highest-rated airline in the world.
Chief financial officer and deputy CEO Howard Millar said the airline also had a strong business model, with a long track record of profitability, and a "superior balance sheet" with low levels of leverage.
"This low cost financing, along with our attractively priced Boeing order for 180 aircraft, will enable us to reduce our aircraft ownership costs, and pass these savings on to our customers by continuing to offer the lowest fares in Europe, while growing from 82m customers to over 110m per annum over the next five years," he said.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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