London—Dentons has advised airBaltic, the Latvian national airline and leading airline in the Baltic region, on the largest corporate bond issue originating from Latvia and the first Baltic corporate bond issued internationally since 2022.

The successful Rule 144A/Regulation S senior secured bond issue of €340 million 14.50% bonds due in 2029 was oversubscribed, drawing substantial interest from more than 100 global institutional investors from 20 countries across three continents. The new bond is also the first issuance on the international bond market from an emerging market airline since July 2023, and was airBaltic's debut issuance into US markets.

Martin Gauss, President and CEO of airBaltic, said: "With the successfully priced bond issue, airBaltic has strengthened its position in the Baltic region by accessing international debt capital markets through its eurobond offerings. The successful placement of this bond serves to refinance our previously issued €200 million eurobond, demonstrating the trust investors have in airBaltic's strategy. This refinancing will substantially boost the company's liquidity and financial stability, allowing us to continue our investments in expanding and modernising our fleet. This marks a historic milestone for our airline."

Nick Hayday said: "It is fantastic to be able to continue to support the airBaltic team, and to work alongside their advisors STJ Advisors and Superia as well as the lead managers, including BNP Paribas, J.P. Morgan and SEB with LHV Pank and Signet Bank, on such a significant bond transaction. This was an extremely complicated transaction and we are delighted to have been part of the team to successfully bring this landmark bond issue to market, reflecting Dentons' ability to deliver on complex debt capital markets transactions and our continuing strength in the aviation sector and across Central and Eastern Europe."

airBaltic was advised by Dentons' London-based Debt Capital Markets team, led by partner and Head of Dentons' Banking and Financial Services Division, Nick Hayday, alongside London-based Capital Markets and US securities partner Cameron Half and Debt Capital Markets partner Victoria Wyer.

The Debt Capital Markets team advising on the deal also included associate Tom Breheny and trainees Miriam Babarinde and Tom Day. Support was also provided by Managing Practice Development Lawyer David Ferris, aviation finance and leasing consultant Serge Sergiou, senior associate Grace Stobbart, Lending and Restructuring partner Marc Gilston, associate Esme Crofton and US tax partner Rich Williams.

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