IAG issues $927m bonds backed by new planes
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.British Airways has launched a $927m (£603m) publicly traded bond issue, using 14 of its new planes as collateral.
The flag carrier, owned by International Airlines Group (IAG), is issuing two classes of certificates, backed by a pool of six Boeing 787-8 aircraft, two 777-300 jets and six Airbus 320-200s, all due for delivery between now and June 2014.
This form of aircraft financing is commonly used by US airlines but has not been used in the UK.
BA said the Class A certificates, raising $721.6m, had an annual coupon of 4.63 per cent, payable quarterly, while the Class B certificates, worth $205.4m and also paid quarterly, have an annual coupon of 5.63 per cent.
"This transaction marks a strategic milestone as we diversify our sources of funding," IAG's finance director, Enrique Dupuy said.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments