Debt Securities Deal of the Year: Ryanair Ex-Im bond the lowest ever spread for this type of instrument
Ryanair's $194.3 million Ex-Im Bank guaranteed pre-funded note, has been awarded the Debt Securities Deal of the Year by Aviation Finance's sister publication Finance Dublin. The sale of the pre-funded notes backed by the US Export-Import Bank on September 6th 2012 were sold for 1.741 per cent. The notes, due in 2024 were to fund seven Boeing 737s and was the lowest spread for a bond guaranteed by the Export-Import Bank of the United States ever. The transaction was more than three times oversubscribed. The cheap capital attained is a testament to the strength of Ryanair's reputation. The airline took advantage of low interest rate conditions and got the lowest spread to mid-swaps of any previous airline with this deal.