Aer Lingus-owner IAG plans to raise about €1 billion through a bond issue, which it said would help see it through if the pandemic-driven travel downturn lasts longer than expected. The average yield for European junk-rated corporate debt is 2.59 per cent, Markit’s Iboxx indices show. Bond marketAlthough IAG lost its investment grade rating last year after the pandemic wreaked havoc on airlines, progress on Covid-19 vaccinations has led investors to revisit the sector. “Airlines is one of the few corners of the bond market still offering some juice,” said the source. BBVA, Goldman Sachs, Morgan Stanley and Santander are managing the IAG issue.

Source: The Irish Times March 18, 2021 10:23 UTC