Irish budget airline Ryanair announced that it has issued an €850m Eurobond at a fixed 2.875% for five years.

It is the first bond in three years for Ryanair and the second by a European airline since the Covid-19 pandemic, reported Reuters.

Last month, Finland flag carrier Finnair issued new euro-denominated in aggregate €200m capital securities.

The bond will be listed on the Irish Stock Exchange (Euronext) and offer access to both Europe and the rest of the world.

Barclays, BNP Paribas and Citigroup served as the joint bookrunners.

Ryanair Group CFO Neil Sorahan said: “We are pleased to have accessed the unsecured Eurobond markets again.

“This €850m transaction, which follows Ryanair’s successful €400m share placing last week, was multiple times oversubscribed and was keenly priced at a coupon of 2.875%.”

The move came a week after Ryanair raised gross proceeds of nearly €400m through a non-pre-emptive placing of new ordinary shares as part of the company’s strategy for greater financial flexibility to capitalise on significant post-Covid-19 growth opportunities.

In a separate development, Ryanair has launched a 50% off over 750,000 seats for travel in September and October to various destinations across Europe, North Africa and the Middle East.

In May, China Southern Airlines reportedly planned to issue up to CNY16bn ($2.25bn) in A-share convertible bonds.