Ryanair lands €850m in its debut bond issue

Ryanair is likely to return to the bond markets next year, following extremely strong demand for its first ever issuance.

The airline yesterday announced it had borrowed €850m via its first bond issue, at a fixed interest rate of 1.875% over a seven-year term.

Ryanair had been expected to seek around €500m, but the extent of interest and demand from European investors led to it upping its raising level. Yesterday’s offer was more than eight times oversubscribed. The proceeds from this and future bond sales will fund Ryanair’s fleet expansion, via 180 new Boeing 737-800 Next Generation aircraft, deliveries of which begin in September.