On Tuesday of last week, Ryanair sold a $1 billion bond (€850 million), its 1st in 3 years, after the price of bonds soared, showing some recovery from the negative financial effects of this pandemic. The bond received orders of $5.22 billion (€4.4 billion) from investors, more than 5 times the amount that Ryanair was seeking to raise. Priced at a yield (the earnings generated and realized on an investment over a particular period of time) of 3%, the bond will pay a coupon (interest payments on a bond, investors specifically call this type a short coupon) of 2.875%, which is more than twice what Ryanair payed for a higher quantity of debt in 2017. This bond sale is the second made by an airline during the pandemic, after Finnair (the flag carrier of Finland), issued a hyrid bond (asset that generally combines 2 or more financial instruments and encompasses bond and equity properties). There have been a lot of financial terms in this article, and I know it is not necessarily easy to remember them all. If you wish that I publish an article listing the definitions of the most important ones, please request your wish by inscribing a comment below. 14th of September 2020.
Aeronews24 