BA to raise $927 million through bond issue

BA to raise $927 million through bond issue

British Airways is to raise $927 million through a new-style bond issue.

The carrier is using 14 new aircraft as collateral in order to obtain the funds through Enhanced Equipment Trust Certificates, a form of aircraft financing commonly used by US airlines.

BA said it was using an underlying collateral pool made up of six new B787-8 aircraft, two new B777-300 ER aircraft and six new A320-200 aircraft, due for delivery between June 2013 and June 2014.

Enrique Dupuy, chief financial officer at parent company International Airlines Group, said: "This transaction marks a strategic milestone as we diversify our sources of funding.

“It is also the first time that British Airways has used EETCs and that this form of financing has been used in the UK".

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