The Qantas Group has today confirmed a 10 year, $500 million unsecured bond issue as part of ongoing management of its debt maturity profile. Once settled, the proceeds will strengthen short term liquidity and then be used to pay $400 million in bonds due to expire in June 2021.
The coupon for the new bond, which was oversubscribed, is 5.25 per cent – significantly lower than the 7.5 per cent funding it replaces.
The Group continues to have no financial covenants on any of its debt.
Qantas is one of few airlines with continued access to long term, unsecured bond markets. Access to this and other funding sources in recent months – including secured debt and equity markets – during the COVID crisis reflects the national carrier’s strong overall position, the importance of aviation to its home market of Australia and its clear recovery plan.