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British Airways Owner Readying Its First Bond With a Junk Rating

  • IAG plans a dual-tranche, senior unsecured benchmark offering
  • It’s the company’s first bond issuance since June 2019

Photographer: Simon Dawson/Bloomberg

IAG SA has hired four banks to prepare an issue of bonds, its first as a junk-rated borrower since losing its prized investment-grade status in May as the pandemic took hold.

The parent company of British Airways, Iberia and Aer Lingus is seeking funds to strengthen its balance sheet against Covid-19’s impact on international travel, according to a person familiar with the matter.