Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Bloomberg Customers

Ryanair Debuts Euro Bonds as Borrowing Costs Fall to Record

Ryanair Holdings Plc sold its first bonds after borrowing costs for investment-grade companies fell to a record in Europe.

The region’s biggest discount airline issued 850 million euros ($1.2 billion) of notes due June 2021, according to a statement from the Dublin-based airline. The average yield investors demand to hold comparable securities fell 10 basis points this month to an all-time low of 2.01 percent, according to Bank of America Merrill Lynch index data.

Ryanair raised the debt after getting the highest credit rating for any airline, a BBB+ grade from Standard & Poor’s and Fitch Ratings. Proceeds from the sale will be used to help fund its acquisition of 180 Boeing Co. 737-800 jets.

“We see this as one of a sequence of issuances,” Chief Financial Officer Howard Millar said in a telephone interview. There is “very strong appetite,” for debt of highly-rated airlines, he said.

The company’s bonds priced to yield 85 basis points more than the mid-swap rate, according to data compiled by Bloomberg. That compares with an average spread of 115 basis points for similarly-rated notes maturing in five to seven years, the Bank of America index data show.

“For a first time issuer, you’d think more yield would be left on the table,” said Patrick Bawlf, a credit analyst at Mizuho International Plc in London. “The bond market has a lot of momentum here and it’s a well-known brand that people know and most like their business model.”

Ryanair agreed to buy five more Boeing Co. 737-800s in April, bringing its total order book to 180 jets worth $16 billion. Deliveries of the planes start in September, Millar said.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.