Air Baltic Airbus A220-300. Photo: Air Baltic

MIAMI – Latvian flag carrier, Air Baltic, has successfully placed the largest bond in the history of Latvia. The airline will also extend its operating seasonal flights to Athens and Reykjavik.

The carrier intends to operate the seasonal route from Riga to Reykjavik up until January 31, 2020, then resuming on the regular rotation on March 3, 2020.

In addition to this, the Riga to Athens route will be operated up to December 1, 2019, and restart on March 4, 2020.

The airline said that both routes will be operated on a two times weekly service with its Airbus A220-300 aircraft.

Martin Gauss, Chief Executive Officer of airBaltic, explained that the airline sees “a growing demand from our passengers for flights to Athens and Reykjavik thus we have now extended the operating season on these routes.”

“This is all possible thanks to the continuous introduction of more state-of-the-art Airbus A220-300 aircraft on airBaltic fleet.”

Air Baltic currently operates flights to over 80 destinations from its Riga hub, offering flights across Europe, Scandinavia, the CIS, and the Middle East.

With the carrier now set to become the largest A220-300 operator in Europe, airBaltic currently runs a fleet of more than 19 planes, with an additional 31 still on order.

airBaltic Places €200m Bond

On July 23, the Latvian carrier placed a €200 million bond into the market. According to the carrier, the 6.75% 5-year bond is the largest of its type ever issued in Latvia.

“This is a historic milestone for our airline – not only have we issued the largest bond of any company in the history of Latvia, airBaltic also became the first airline in Central and Eastern Europe to access the international debt capital markets with a Eurobond offering,” said Gauss.

“Investors have clearly shown that they see airBaltic‘s strategy as mature and strong. We will continue to execute the growth strategy outlined in our Destination 2025 business plan and we will significantly strengthen our liquidity with the issue of the bonds and continue investments into our fleet,” he added.

The airline notes that the transaction was well received by the international and local investor community. The bond has been allocated to more than 100 investors from 25 countries and the demand for the securities exceeded supply.