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BA inaugural $927 million EETC Bond Issue

International Consolidated Airlines Group, S.A. ("IAG") today announces the successful launch by British Airways of an inaugural $927 million publicly-traded bond issue, using aircraft as collateral. These bonds are known as EETCs, or Enhanced Equipment Trust Certificates, and are a form of aircraft financing commonly used by US airlines.

The transaction includes Class A and Class B Certificates with an underlying collateral pool made up of six new B787-8 aircraft, two new B777-300 ER aircraft and six new A320-200 aircraft, due for delivery between June 2013 and June 2014.

The Class A Certificates ($721.6 million) have an annual coupon, payable quarterly, of 4.625%, and the Class B Certificates ($205.4 million) have an annual coupon, payable quarterly, of 5.625%.

Enrique Dupuy, CFO of IAG said: "This transaction marks a strategic milestone as we diversify our sources of funding. It is also the first time that British Airways has used EETCs and that this form of financing has been used in the UK".

The transaction is rated by Standard and Poor's (A/BBB), Moody's (Baa1/Ba1) and Fitch (A/BBB-).

Citi acted as Lead Structuring Agent and Global Co-ordinator on the transaction.

26 June 2013