The Qantas Group has confirmed a 10-year, $500 million unsecured bond issue as part of ongoing management of its debt maturity profile.
Once settled, the company said the proceeds will strengthen short-term liquidity and then be used to pay $400 million in bonds due to expire in June 2021.
The coupon for the new bond, which Qantas noted was oversubscribed, is 5.25 per cent – significantly lower than the 7.5 per cent funding it replaces.
The group said it continues to have no financial covenants on any of its debt.
“Qantas is one of few airlines with continued access to long-term, unsecured bond markets,” it said in a statement.
“Access to this and other funding sources in recent months – including secured debt and equity markets – during the COVID crisis reflects the national carrier’s strong overall position, the importance of aviation to its home market of Australia and its clear recovery plan.”
Confirmation of the bond issue comes after Qantas revealed a $1.9 billion loss for the last financial year.
Featured image source: Qantas