IAG plans €1bn bond offering to weather 'prolonged downturn'

BA owner IAG unveiled plans to raise €1bn (£855m) to help it weather the expected longer downturn in the travel sector from the Covid-19 pandemic.

IAG, which also owns Iberia and Aer Lingus, said it would sell two sets of bonds, each raising around €500m. The group said it wanted to bolster its balance sheet and increase overall liquidity and then take advantage of a recovery in demand.

It added that the cash would be used to help “the group withstand a more prolonged downturn in air travel”.

The first tranche of bonds will mature in March 2025, with the second four years later and will be traded on the Dublin exchange.

IAG last year reported a €7.4bn operating loss – swinging from a €2.6bn profit in 2019. It has also shed 10,000 staff during the crisis.