London, Wednesday, April 28, 1999: British Airways today launched through British Airways Finance (Jersey) LP an issue of Euro 300 million (approximately £200 million) fixed interest perpetual preferred securities.

This is the first Euro denominated issue of its type by a non-financial UK business.

The funds will be used by the airline for general corporate purposes.

The non-voting, cumulative preferred securities will have a nominal value of Euro 25 and a fixed coupon of 6.75 per cent. Distributions will be made quarterly in arrears. The securities have no fixed maturity but may be redeemed by the issuer after five years.

British Airways is currently the highest rated airline with current senior long-term debt ratings from both major ratings agencies, A2 by Moody’s and A- by Standard & Poor’s.

The issue will be lead managed by Warburg Dillon Read, a division of UBS AG, and will be placed in the international capital markets. The issue is to be listed on the Luxembourg Stock Exchange.

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