Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Transaero Bonds Go to Wi-Fi

Transaero Airlines, the country's second-largest air carrier with more debt than its bigger state-run rival Aeroflot, is investing to equip jets with Internet access in a push that's sent borrowing costs soaring.

Transaero sold 2.5 billion rubles ($85 million) of bonds to install the system on March 2, paying a yield of 12.5 percent for debt redeemable next year. That's 1 percentage point more than the company paid for four-year notes in its last financing in October 2009.

The technology push may lift the ratio of Transaero's debt to earnings before interest, tax, depreciation, amortization and rent, a solvency measure for airlines, above its current 11.7, compared with 2 for Aeroflot, according to Raiffeisenbank. Transaero's yield is the highest offered to investors in new ruble debt since August, data compiled by Bloomberg show.


… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more