Silk Way West Airlines, the largest airline in the Caspian region, announces its first-ever bond issuance. Given that the company’s main operations and revenues are in foreign currency, as well as the potential impact of the coronavirus pandemic on future indicators, it was decided to issue the bonds in US dollars.
Thanks to the improvement in conditions further to the easing of COVID-19 restrictions on aviation, flight numbers will continue to increase, leading to rising foreign exchange earnings and capacity for timely payment of the company’s obligations.
Silk Way West Airlines bonds will yield 5% interest per year over three years, with the proceeds used for fleet renewal. The bonds are planned to be released in five tranches of USD 10 million each. The underwriter of the USD 1,000 bond is PASHA Capital, a leading investment company listed on the Baku Stock Exchange.
“When analyzing the airline’s revenue and tonnage forecasts, we note that the expansion of the airline market will have a positive impact on business development, profitability through premium sales will increase faster than planned. All proceeds from the placement of the USD 50 million in bonds will be used to upgrade the Silk Way West Airlines fleet”, said Dr. Mir Samad Movsum-zadeh, Member of the Supervisory Board of Silk Way West Airlines LLC.
PASHA Capital investment company was established in June 2012, and has since become the largest investment company in the country, achieving a turnover of AZN 10.2 billion through its investments on the Baku Stock Market in the first nine months of 2021.
Founded in 2012 in Baku, at the heart of the Silk Road, Silk Way West Airlines operates around 350 monthly flights across the globe via its fleet of 12 dedicated Boeing 747-8F and 747-400F aircraft. On April 28, 2021, Silk Way West Airlines signed a strategic fleet expansion agreement with Boeing for five state-of-the-art 777 Freighters. Based at Heydar Aliyev International Airport, the airline’s annual cargo turnover exceeds 420,000 tons, while its growing route network covers over 40 destinations across Europe, the CIS, the Middle East, Central and Eastern Asia, and North and South America. South Korea’s Incheon Airport honoured Silk Way West Airlines with the prestigious ‘Cargo Airline of the Year 2020’ award.
Source: TREND News Agency