Airbus lands aggressive 20 year bond but airlines not cleared for take-off

Airbus A400M military aircraft from co media gallery 575x375
By Mike Turner
02 Jun 2020

Airbus, the European aircraft manufacturer, flattened its curve on Tuesday with a €3.5bn three tranche bond issue that commanded €15.1bn of demand. But European syndicate bankers said it offered no read-across for whether airlines might return to the bond market soon and that their chances of doing a deal were distant.

Airbus, rated A2/A with negative outlooks, was aggressive from the start, opening books for a June 2040 note, alongside June 2030 and 2026 tranches.

“It’s a tricky industry and a 20 year is gutsy,” said a syndicate banker off the deal. “Hats off to the bookrunners, though, they made ...

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