Budget airline Wizz Air (WIZZ) emphasised its optimism for a rapid recovery in the European flights industry by raising €500 million through a bond offering. The bonds come with a 1% coupon and expire in 2026, while Wizz Air’s credit is rated BBB by ratings agencies Fitch and Baa3 by Moody’s.
That the company says the offer was ‘oversubscribed’ illustrates the rampant appetite among investors for reliable income options, and their willingness to back well-run operators in a sector blighted by the Covid pandemic for nearly two years.
Wizz Air, which connects many European cities with business centres in the Middle East, and flies to holiday hotspots like Greece, Spain and Turkey, said it was taking advantage of ‘robust financing markets and very attractive pricing,’ and will use the funds raised for general purposes plus repay the £300 million emergency Covid loan financing facility.
SCALE-UP FUNDING
‘We are pleased to announce our second bond offering at even more attractive pricing levels compared to our debut offering last year,’ says József Váradi, Wizz Air chief executive.’
‘The proceeds will further support Wizz Air as it scales-up to become an even stronger low-cost player in the coming years.’
Wizz Air has been one of the more robust airline stock performers through two tumultuous years as Covid saw national borders around the world closed and travel ground to a virtual halt. It recovered almost all of its initial Covid sell-off losses by November 2020, and the shares hit an all-time £55.65 high in March 2021.
The stock drifted 1.3% lower on Thursday to £45.37.
