airBaltic agrees with investors on financing of up to €257 million
Latvian airline airBaltic has reached an agreement with investors on interim financing of up to €257 million. The funds are planned to be raised to strengthen the carrier’s liquidity and provide resources for implementing its updated business plan.
As LSM English reports, the annual interest rate on this financing will be 25%. To obtain the funds, airBaltic must still secure approval from bondholders and shareholders. A meeting of bondholders has been scheduled for September 11, 2026.
Financing terms
After receiving consent from bondholders and meeting the remaining conditions, the company expects to gain access to €180 million shortly. Another €77 million will become available after additional conditions are met.
The interim financing is planned to be raised through the issuance of new bonds maturing on February 26, 2027. According to the airline’s stock exchange announcement, this involves the issuance of new senior-priority bonds totaling approximately €257 million.
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Investors and use of funds
The placement of the issue is to be secured by London-based investment manager Polus Capital Management and Israel-registered investment firm Klirmark Capital 4. Current bondholders, including the Latvian state, will also have an opportunity to participate proportionally in the new issue.
The raised funds are planned to be used to refinance existing liabilities related to aircraft and engines, as well as for current expenses, including repairs, maintenance and airport charges. airBaltic Chairman of the Management Board Andrejs Martinovs said that 25% is the best rate the carrier can currently obtain for short-term interim financing.
The company also stated that it will operate its flight schedule as planned during the period of raising and reviewing the temporary financing, and no disruptions for passengers are expected.
