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Show me the money: Ryanair has raised €850 million for new planes
The carrier is the best-rated airline in Europe, and says it is planning further savings for passengers.
RYANAIR HAS RAISED €850 million with its first ever Euro bond debt issuance.
In a statement this evening, the airline said that it was issuing the bond to “source low cost financing for its new 180 Boeing 737-800 NG order”.
The cash target announced today by the airline is substantially higher than the €500 million figure that had originally been mooted.
The airline is thought to have increased its target due to the level of interest in the bond, which was more than eight times over-subscribed.
Ryanair secured a rate of 1.875% fixed for seven years.
A Ryanair source said that this would be the first of several visits to the bond market, with the airline hopeful of raising “several billion” by this method.
Deliveries of the new aircraft start in September this year, with Ryanair claiming that the addition to its fleet will allow it to grow by forty per cent over the next five years to over 110 million customers per year.
The Dublin-headquartered carrier was given an investment grade BBB+ rating by Fitch last month, which was seen as a key moment in allowing it to access the bond market.
Ryanair chief financial officer Howard Millar said that the Fitch rating had made the budget specialist the highest rated airline in the world.
“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 fairs in Europe.”
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