airBaltic has reached agreement with certain existing bondholders and third-party finance providers on interim financing of up to €257 million to support liquidity and its new business plan. The package is expected to be raised through short-term bonds due in February 2027, with an initial €180 million tranche available first and a further €77 million contingent on additional conditions.
Approval is still needed from remaining bondholders and shareholders, with a bondholder meeting set for 11 September. The structure reportedly includes backing from Polus Capital Management and Klirmark Capital 4, while existing bondholders, including the Latvian state, may participate proportionally.
The financing is not dependent on fresh Latvian government support, although the state can take part in its role as a bondholder. Local coverage put the rate at 25%, underscoring the cost of the short-term funding as airBaltic works through liquidity pressure and a broader restructuring tied to its turnaround plan.