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Ryanair makes its bond debut by raising €850m for planes

June 11, 2014


BUDGET airline Ryanair issued its first ever bonds yesterday, raising 850m (687m) to help finance its order for 180 new Boeing planes.

Ryanair said the seven-year, euro-denominated bonds were eight times oversubscribed and attracted investors from across Europe.

The firm, whose shares are listed in London and Ireland, claims its BBB+ debt rating makes it the best-rated airline in the world.

Chief financial officer Howard Millar said the bonds, which would pay holders 1.875 per cent, offered the firm a significant discount to financing costs from other sources of around 3.8 per cent.

"This is way ahead of anyone else. It's a significant competitive advantage," Millar told Reuters yesterday.

The funds will be used to pay for Ryanair's new fleet of Boeing 737-800 Next Generation aircraft, which will be delivered between this September and 2018.

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Source: City A.M. (UK)

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