British Airways owner International Airlines Group is seeking to raise €800 million to counter ongoing Covid-19 uncertainty.
The group is launching a bond offer follows a range of fund-raising exercises since the start of the crisis more than a year ago.
But IAG said: “Given the continuing uncertainty in respect of air travel, the net proceeds from the offering will be used by IAG to strengthen the group’s balance sheet and increase the group’s overall liquidity position and provide the group with increased operational and strategic flexibility to take advantage of a recovery in demand.”
IAG will have the option to redeem all of the bonds on or after 8 June 8, 2026.
The company, which also owns Aer Lingus, Iberia and Vueling, said it had taken “decisive action” to bolster its liquidity since the start of the pandemic.
This has resulted in resulting in total cash and facilities of €10.5 billion recently reported for March 31 compared to €9.1 billion at the end of 2019.
Funding in 2020 and 2021 to date has included €2.7 billion rights issue, €1.5 billion government-supported loans, a €2.2 billion UK export finance loan, €1.2 billion unsecured bonds and €2.6 billion aircraft financings, sale and leaseback transactions and other asset sales.
IAG also increased and extended its facilities by securing a $1.8 billion (€1.5 billion) three-year revolving credit facility.