Aegean Airlines chairman Eftichios Vassilakis will issue a common bond loan, amounting up to 250 million euros, next week, aiming to capitalize on the momentum from the geopolitical de-escalation in the Middle East.
His goal is to strengthen the country’s largest airline, which was founded in the 1990s by his father, Theodoros Vassilakis.
How does Eftichios Vassilakis plan to use the funds raised from the bond issuance?
- Firstly, 50% (i.e. 121.9 million euros) will be allocated to the repayment of the current bond loan, which is traded on the Athens Stock Exchange and expires in March 2026.
- Secondly, 17% (i.e. 41.5 million euros) will be used to acquire new aircraft and engines, contributing to the renewal and modernization of the fleet, at a time when international and domestic competition is constantly increasing.
- Thirdly, the remaining 33% (i.e. 80.5 million euros) will be used to cover the company’s working capital needs.
The upcoming bond issue, with a duration of seven years, which will “run” from Monday (30/6) to Wednesday (2/7), aims to keep the lending line that was “opened” in 2019 active.
