Ryanair raises E1.2b in oversubscribed bond sale

Ryanair raised E1.2b at a record low coupon rate in a five-year bond sale on Tuesday, as Europe’s largest low-cost airline took advantage of favourable market conditions to bolster its finances. The sale happened a day after the Irish carrier reported a record annual loss of E815m as a result of travel restrictions linked to the coronavirus pandemic. Senior executives said on Monday that conditions were good to tap capital markets, though they noted there was no urgent need to raise funds. Ryanair had E3.15b in cash at the end of March and unencumbered aircraft worth at least E7.3b, CFO Neil Sorahan said ahead of the bond issuance. Ryanair is one of the few airlines that has an investment-grade credit rating, with a BBB score from both S&P Global Ratings and Fitch Ratings. “We are pleased with the success of our latest, low-cost, unsecured bond issue,” Sorahan said in a statement. The sale was “keenly priced” at a coupon of 0.875%, he added. It received demand of E5.2b, according to two lead managers.<br/>