IAG (LON: IAG), the owner of British Airways, has seen its shares fall on Thursday after announcing it will raise approximately €1 billion through a bond sale.
The bonds will be issued in two tranches, with the first initial amount of approximately €500 million due on the 25th of March 2025. The second amount of €500 million is expected in March 2029.
IAG shares are down 1.39% at 213.2p.
The final terms, including the principal amount of each series and the aggregate principal of the Bonds, are expected to be announced soon, the company said.
The net proceeds will be used by IAG for general corporate purposes, including strengthening its balance sheet, helping the company withstand a more prolonged downturn in air travel, and providing it with the operational and strategic flexibility to take advantage of a recovery in air travel demand.
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