Latvian airline airBaltic has secured commitments for up to €257 million in interim financing as it works to strengthen liquidity and implement its revised business plan.
The financing will be provided by a combination of existing bondholders and third-party financial institutions through newly issued bonds maturing on February 26, 2027. The financing providers have committed to making the full amount available, subject to regulatory approvals and other conditions.
Under the proposed financing structure, €180 million is expected to become available shortly after approval by bondholders. A further €77 million would be accessible once additional conditions under the agreement are met.
A bondholder meeting is scheduled for September 11, where investors will consider the proposed transaction.
Financing to support revised business plan
The interim funding is intended to provide airBaltic with additional liquidity as the airline implements measures aimed at improving operational efficiency and strengthening its financial position.
The carrier is pursuing a revised business plan designed to improve efficiency and move the airline toward a more self-sufficient financial position. The additional financing is expected to provide greater flexibility as airBaltic works through the restructuring process.
The transaction does not require a fresh financial contribution from the Latvian government. However, Latvia could participate proportionally to its existing position as an airBaltic bondholder under recently adopted legislation.
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Subject to bondholder and shareholder approval
The proposed financing remains subject to approval from airBaltic’s bondholders and shareholders, along with the fulfilment of other conditions.
The transaction forms part of a wider financial restructuring linked to the airline’s revised business plan. Securing additional liquidity is expected to give airBaltic greater financial stability while management works to improve the carrier’s underlying performance.
With up to €257 million potentially available, the financing represents a significant step in airBaltic’s efforts to strengthen its balance sheet and support the implementation of its longer-term strategy.
