Colombia’s largest airline, Avianca SA, sold 500 billion
Colombian pesos (US
purchase of Airbus jets and to pay debt.
Avianca, which initially expected to sell
amount as demand for the securities reached
The proceeds of the bond sale will finance the purchase of four Airbus jets
due to arrive in 2010 and to pay
banks, company Chief Financial Officer
Avianca sold bonds maturing in five years at inflation plus a spread of 5.50
It also sold seven-year bonds at inflation plus a spread of 6.30 percentage
points and 10-year bonds at inflation plus a spread of 6.69 percentage points.
In 2008, Avianca began the purchase or lease of 34 new Airbus jets, of which
five are A330s and 29 are A319 and A320 jets. The company has ordered 12 new 787
Dreamliner jets from U.S. manufacturer
said the delivery of the planes is delayed.
Avianca is replacing its aging fleet with new jets that will allow the company
to save fuel, lower maintenance costs and boost revenues. (Dow Jones)