International Airlines Group (IAG) is launching an €800 million bond issue as the shutdown of international travel in response to Covid-19 continues.

The group, which owns British Airways, Iberia and Aer Lingus, will offer the bonds on May 18th, with repayment due in 2028.

The offering is being issued by IAG under the powers delegated to its board of directors at its annual general meeting held in September last year.

The target market for the bonds is comprised of professional clients only, excluding retail investors.

IAG said the cash would be used to strengthen its balance sheet and increase the overall liquidity position, while also offering increased “operational and strategic flexibility” to take advantage of a recovery in demand.