IAG issues $927m bonds backed by new planes
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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.
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