Business

Avia Solutions raises €276m to fund development

Aviation group to pay off older debt also

Avia, which has its headquarters in Dublin, provides aircraft crews, maintenance and insurance to airlines, as well as operating several carriers itself. It has businesses in 68 countries.

Barry O'Halloran
Wed May 15 2024 - 18:13

Irish-based aviation group Avia Solutions has borrowed $300 million (€276 million) to fund development and pay off older debt, the company said on Wednesday.

Avia, which has its headquarters in Dublin, provides aircraft crews, maintenance and insurance to airlines, as well as operating several carriers itself. It has businesses in 68 countries.

The company said it had borrowed $300 million through the issue of unsecured bonds repayable in five years with an interest rate of 9.75 per cent.

Avia plans to use the cash to further its business development and to refinance an earlier bond issue due for repayment this year of which $180 million remains outstanding, a statement said.

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The company noted that demand for the bonds was strong, with investors bidding for almost twice the amount that Avia actually issued.

Chief Executive, Jonas Janukenas, maintained that the appetite for the debt validated Avia’s view that it could deploy cash intelligently.

“We are expanding our worldwide services operations, fleet capacity and capabilities to continue delivering exceptional services to customers,” he added.

Avia grew profit more than five-fold to €68 million last year, while revenues increased to €2.3 billion. Its airlines own 212 aircraft in total.

The company moved its headquarters to the Republic from Lithuania last year.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas

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