On Wednesday, Dublin-based aviation corporation Avia Solutions announced that it has secured a loan of $300 million (€276 million), which will be directed towards growth pursuits and settling matured debts. The company, with operations across 68 nations, offers a multitude of services including crew provision, maintenance, airlines insurance and management of a number of air carriers.
To obtain this funding, Avia issued unsecured bonds repayable in five years carrying a 9.75 per cent interest rate. This financial injection will be channelled into further business expansion and retiring an earlier bond issue, which has an outstanding value of $180 million, due for repayment this year, according to the company’s statement.
Investor interest in the bonds was significant, with bids nearly doubling the actual issuance. CEO Jonas Janukenas attributes this high demand to Avia’s strategic use of cash. He said, “We are broadening the reach of our worldwide operations, enhancing our fleet’s capacity and honing our services to offer unparalleled service to our clientele.”
Avia Solutions, which recently relocated its headquarters from Lithuania to Ireland, reported a substantial surge in its annual profit, which multiplied over five times to reach €68 million. In addition, company revenues were up, reaching €2.3 billion, with its airlines owning a combined total of 212 aircraft.