Thursday 30 March 2017

Ryanair insists it won't issue bonds this year

Neil Sorahan
Neil Sorahan
John Mulligan

John Mulligan

Ryanair has insisted it has no plans to issue a fresh tranche of debt this year under its €3bn bond programme.

Under Central Bank rules, the airline has just renewed the base prospectus for the bond programme, which it is using to finance its aircraft acquisitions.

It had over 350 aircraft in its fleet at the end of June, a figure that will rise to an expected 546 by 2024.

The airline, headed by Michael O'Leary, has issued two tranches of debt under the bond programme, each of them for €850m. The first was issued in 2014, and the second in 2015. The 2014 notes carry a 1.875pc coupon, or interest rate, while there's a 1.125pc coupon on the 2015 notes. The airline was been rated BBB+ by ratings agencies Standard & Poor's and Fitch.

The airline has 315 aircraft on order with Boeing, including 737-800s and 737-Max-200 jets.

Those aircraft are being delivered to the carrier between now and 2024.

"The company has raised and expects to continue to raise substantial debt financing to cover all of the expected aircraft deliveries over the period September 2014 to November 2013," the prospectus notes.

The airline has also entered into significant derivative transactions intended to hedge its current acquisition-related debt obligations.

Earlier this year, Ryanair chief financial officer Neil Sorahan said that the airline would rely on its own cash reserves this year to finance continued capital costs, rather than issuing further bonds under the €3bn programme.

A spokesman said that the airline's position has not changed.

Irish Independent

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