Business

Ryanair lands $1 billion as European airline bonds begin to take off

Published

4 years ago

September 9, 2020

AMSTERDAM (Reuters) – Ryanair (RYA.I) sold an 850 million euro ($1 billion) bond on Tuesday, its first in three years, in a sign that European debt markets are starting to reopen to airlines, which were crippled by the coronavirus crisis.

The sale by Europe’s largest low-cost carrier is the second by an airline in Europe since the COVID-19 pandemic after majority state-owned Finnair (FIA1S.HE) issued a hybrid bond, which combines debt and equity features.

Investors put in 4.4 billion euros of orders for the bond, more than five times the amount Ryanair was seeking to raise, a lead manager memo seen by Reuters showed.

Ryanair’s balance sheet, one of the strongest in the industry with more than 3.9 billion euros of cash at June 30 and aircraft worth about 7 billion euros, was behind investor demand, analysts said.

It also raised 400 million euros from shareholders last week.

“Ryanair is in a better place, therefore it’s going to be easier for it to get the financing it wants,” Azhar Hussain, head of global credit at Royal London Asset Management, said.

It is one of three airlines, together with easyJet and Southwest Airlines, that still holds investment grade ratings, ratings agency S&P said in August, noting all three are low-cost carriers.

Many airlines, including Lufthansa (LHAG.DE) and British Airways owner IAG (ICAG.L) saw their credit ratings cut to “junk” status during the pandemic.

S&P said it considers Ryanair to be one of the financially strongest airlines as it removed its ‘BBB’ rating – two notches above junk – from ‘credit watch’ on Monday, making an imminent downgrade less likely.

Ryanair’s bond, pricing at a yield of 3%, will pay a coupon of 2.875%, the lead manager said.

That is more than double what Ryanair paid for longer debt in 2017, but a fraction of the yields of more than 12% which its bonds hit in March.

Though slowly picking up, bond issuance by European airlines has lagged the United States, where companies including Delta (DAL) and American Airlines (AAL.O) have raised at least $36 billion since March, ABN AMRO data shows, although many have had to offer investors security over their assets.

“To me (Ryanair) says that the door is wide open for deals,” Daniel Ender Aizencang, ABN AMRO fixed income strategist, said.

Still, European borrowing costs remain elevated compared to pre-coronavirus levels, keeping some away.

IAG agreed a rights issue on Tuesday after it was told by bankers that a debt and convertible issue it considered in July would be too expensive.

Ryanair, which hired Barclays, BNP Paribas and Citi to manage the sale, will use part of the proceeds to refinance an 850 million euro bond due in June 2021, a banker who worked on the deal said.

($1 = 0.8478 euros)

Reporting and photo: Reuters

Business

Maldives celebrates arrival of 2024’s 1 millionth tourist

Published

4 weeks ago

June 27, 2024

m@ldives

Maldives on Thursday welcomed the one millionth tourist to visit this year.

The one millionth tourist is a Thai named Sutapa Amonwivat, who arrived from Singapore with her husband and two children. This is her second visit to Maldives.

Maldives Marketing and Public Relations Corporation (MMPRC) and the Ministry of Tourism gave a warm welcome to Sutapa at the Velana International Airport (VIA) Thursday afternoon. She was welcomed at the VIA by tourism minister Ibrahim Faisal, MMPRC Managing Director Ibrahim Shiury and senior officials of various relevant agencies.

After welcoming her with traditional offerings, she was presented with various gifts by the ministry, MMPRC, customs, immigration, Maldives Association of Travel Agents and Tour Operators (MATATO) and Trans Maldivian Airways (TMA).

Maldives reached one million tourists in June, three weeks earlier than last year. The number of tourists reached one million on July 16, 2023.

Maldives expects to reach 2 million tourists this year.

Business

New air route connects Chongqing to Maldives

Published

1 month ago

June 25, 2024

m@ldives

Chongqing Airlines on Monday began its inaugural flights to Maldives.

The Chongqing-Male route, scheduled three times a week, is expected to strengthen the bonds between China and the Maldives, opening up exciting new opportunities for tourism and cultural exchange.

The inaugural flight was welcomed upon its arrival at Velana International Airport (VIA) in Maldives, where local officials and tourism representatives expressed their enthusiasm for this new development.

“We warmly welcome our friends from China to our beautiful islands. This new connection strengthens our bonds and opens up new opportunities for tourism,” the tourism ministry said on X.

Maldives currently welcomes four airlines from China, including China Eastern, Beijing Capital Airlines, Xiamen Airlines.

In January, Maldives government urged tourism stakeholders in both Maldives and China to ramp up efforts to restore China’s position as the primary source market for Maldives tourism, a status held before the onset of Covid-19.

China, being the largest source market for Maldives tourism before the pandemic, saw a resumption of tourist arrivals from January 2023 after a three-year hiatus due to the pandemic. In 2023, the Maldives welcomed 187,118 Chinese tourists, marking a significant recovery in numbers. This year, the Maldives has welcomed the most number of tourists from China, with over 107,940 or 11.5 percent of total arrivals by June 12.

Business

CROSSROADS Maldives Introduces Weixin Pay at resorts for seamless guest experience

Published

1 month ago

June 21, 2024

m@ldives

CROSSROADS Maldives has introduced WeChat Pay, widely known as Weixin Pay in China, across its world-class resorts, SAii Lagoon Maldives, Curio Collection by Hilton, and Hard Rock Hotel Maldives. This payment option is made available to enhance the convenience and overall experience for guests from China, making their stay in the Maldives more enjoyable and hassle-free.

Understanding the needs of the diverse guests, CROSSROADS Maldives has integrated WeChat Pay into operations, allowing guests from China to easily and securely conduct transactions using a payment method familiar to them. The introduction of WeChat Pay is a testament to CROSSROADS Maldives’ dedication to enhancing guest satisfaction by offering exceptional experiences at every turn. What is also expected through this initiative is that the guests could benefit from better foreign exchange rates, translating to better savings on their expenditures during their stay.

The option is available for guests in-house conveniently at both resorts as well as across the Marina at CROSSROADS Maldives where a wider variety of unparalleled dining and retail experiences are available for all guests. The day visitors from China will also therefore equally benefit from this new introduction at the Maldives’ premier multi-island integrated leisure destination.

SAii Lagoon Maldives, Curio Collection by Hilton, is a vibrant tropical escape that offers unique and locally inspired experiences. The resort features spacious rooms and villas, a variety of dining options, and an array of recreational activities designed to cater to the desires of modern travellers. Guests can escape to the island’s SAiisational natural beauty, enjoy water sports, and indulge in spa treatments, all while relishing the personalised service that defines Hilton’s Curio Collection.

Hard Rock Hotel Maldives brings the iconic Hard Rock spirit to the tranquil shores of the Maldives. This family-friendly resort offers a perfect blend of relaxation and entertainment, featuring music-inspired experiences, live performances, and the brand’s signature amenities. With luxurious accommodations, diverse dining options, and a plethora of activities for all ages, Hard Rock Hotel Maldives ensures an unforgettable holiday experience for every guest.