Thursday 14 January 2021 7:55 am

Wizz Air launches €500m debut bond

Wizz Air today said that it had sold €500m in three-year bonds at an interest rate of 1.35 per cent.

The budget carrier said that the bonds, which are due in 2024, are part of plans to raise €3bn from its euro medium-term note programme.

Read more: Ryanair and Wizz Air passenger numbers plunge 80 per cent amid lockdown

The Hungarian flier said that proceeds from the sale would go towards strengthening its financial position.

It was reported that the carrier received more than €2bn in orders from investors despite the BBB- credit rating.

Analysts said that the deal showed that fund managers were still willing to buy debt from distressed industries such as aviation.

Wizz Air saw passenger numbers drop 80 per cent in December as coronavirus restrictions continued to batter the airline.

Before the Open: Get the jump on the markets with our early morning newsletter

With even harsher lockdowns now in place in some of the carrier’s key markets, passenger numbers are likely to fall further over the coming months.

Chief executive József Váradi commented: “We are pleased to announce our debut bond offering which demonstrates Wizz Air’s access to alternative financing markets at highly attractive pricing.

“The proceeds will further strengthen Wizz Air’s already excellent liquidity position providing continued flexibility to respond to growth opportunities, as well as providing additional financial resilience.”

Read more: Wizz Air slams slot suspension as it seeks to grow presence at Gatwick

The Joint Bookrunners were Barclays, BNP Paribas, Citigroup and J.P. Morgan.