“A very successful transaction,” Silina is not worried about the high interest rate in the issuance of “airBaltic” bonds

The Prime Minister emphasized that “airBaltic” has made the largest bond transaction in Latvia in cooperation with the largest banks, so there would be no reason to compare it with unsuccessful historical examples, such as the bankrupt loan company “Auseklītis”.

The balance sheet of “AirBaltic” has been well checked, and the company had expected an even higher interest rate. “People may be surprised by such a rate, but we must remember that we live with very high interest rates from the European Central Bank, which also affects the airBaltic deal,” said the Head of Government.

“This is a very successful transaction for “airBaltic”, they have refinanced the entire volume of their previously issued bonds, will be able to return the loan to the state and will move on. This is only the first step of significant changes in the overall financial scheme of “airBaltic”, said Siliņa, noting that “airBaltic” works with a profit, which is a good indicator for companies that have had a hard time during the Covid-19 crisis.

“I am very proud that we have “airBaltic”. The fight for this field is big, and the competition is high,” added the politician.

As reported, the Latvian national airline “airBaltic” has issued bonds worth 340 million euros. In a statement to the media on Tuesday evening, the company informed that the airline has issued 5.25-year secured bonds in the amount of 340 million euros with an interest rate of 14.50%.

Settlement of the bonds is expected to take place on May 14, 2024, and they are planned to be listed on the Euronext Dublin stock exchange, which is one of the world’s most recognized bond listing sites, according to the airline.

The audited turnover of “airBaltic” last year was in the amount of 664.289 million euros, which is 33.2% more than in 2022, and the company also made a profit in the amount of 33.852 million euros, in contrast to losses the year before.

The Latvian state owns 97.97% of airBaltic’s shares, while “Aircraft Leasing 1” owned by the financial investor, Danish businessman Lars Tūsen, owns 2.03%.

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