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Ryanair returned to the borrowing markets today issuing €750 million in bonds.
On the 8th of February 2017, Ryanair announced that it has issued a 6.5 year, €750 million ($800.53 million), Eurobond at a fixed coupon of 1.125%. Ryanair is rated BBB+ (stable) by both Standard & Poor’s and Fitch Ratings. These ratings reflect the ratings of Ryanair’s business model which as a long established track record of profitability, cash generation, and an industry leading balance sheet. “This low cost finance will enable us to further reduce our aircraft ownership costs while continuing to offer the lowest fares and best customer service,” Neil Sorahan, Ryanair’s Chief Financial Officer said. The yield, or interest rate, on corporate bonds has fallen since the ECB extended its Quantitative Easing programme last June. The return to the markets comes just two days after Aannounced an 8% drop in third quarter profits.
“We expect sterling to remain volatile for some time and we may see a slowdown in economic growth in both the UK and Europe as we move closer to Brexit,” Ryanair’s CEO Michael O’Leary said on an investor call on Monday. The bond will be listed on the Irish Stock Exchange which offers access to both Europe and the rest of the world. The joint book runners were BNP Paribas, Citigroup and Crédit Agricole.