28th Jun 2019 14:08
(Alliance News) - International Airlines Group SA on Friday said it has converted two of the 100 Airbus A320neo options announced in August 2013 into firm orders for Iberia.
The aircraft's list price, as of January 2012, was USD94.0 million per plane, although they are sold at a substantial discount from the list price. The two new aircraft will be delivered in 2021 and will be used to replace two A320ceos in the airline's shorthaul fleet.
The company, which also owns British Airways, said the new fuel efficient aircraft will bring both cost efficiencies and environmental benefits to Iberia's fleet.
IAG said it has a range of financing options and will choose the most appropriate source closer to the delivery time.
Separately Friday, IAG said it would raise EUR1 billion via issue of two tranches of senio unsecured bonds. The airline operator intends to raise EUR500 million via an issue of bonds due July 4, 2023 and a further EUR500 million via an issue of bonds due July 4, 2027.
Net proceeds the two offerings will be used by IAG for general corporate purposes, including to fund the repurchase of IAG's outstanding EUR500 million 0.25% convertible bonds due 2020.
IAG had announced that buyback on Monday, raising the repurchase price on Wednesday to EUR100,350 per EUR100,000 face value. On Monday, IAG had said it was considering a new euro-denominated bond issue and said the repurchase depended on the issue's success.
Shares in IAG were trading 4.5% higher at 474.80 pence each on Friday afternoon in London.
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