Airline set for bond market return in summer

Ryanair is likely to raise a further €750m-€850m in low-cost debt financing this summer, in a bid to further bolster its already strong balance sheet.

The airline successfully borrowed €850m, via its debut bond issue, last June at a fixed low interest rate of just under 1.9%, over a seven-year term. At the time, management said the strong demand from prospective debt buyers was such that it might issue a second bond in 2015.

Speaking at the company’s latest quarterly results update yesterday, chief executive Michael O’Leary said the airline is looking at the option and could raise the additional funds after it issues its full-year financial results in July.