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Conversion of Securities

6 May 2016

International Consolidated Airlines Group, S.A. to redeem €390,000,000 1.75 per cent. Convertible Bonds due 2018 (ISIN XS0933556952)

International Consolidated Airlines Group, S.A. (the "Issuer") announces that, under the terms and conditions of its €390,000,000 1.75 per cent. Convertible Bonds due 2018 (the "Bonds"), it has exercised its option to redeem all of its outstanding Bonds on 21 June 2016 (the "Optional Redemption Date") at their principal amount (being, as at 5 May 2016, €386,100,000 in aggregate) plus accrued but unpaid interest in respect of such Bonds up to, but excluding, the Optional Redemption Date.

As such, Deutsche Bank AG, London Branch (acting as fiscal, principal paying, transfer and conversion agent) will today despatch an optional redemption notice to all the holders of the Bonds (the "Bondholders").

As an alternative to the redemption of the Bonds, the Bondholders have the option under the terms and conditions of the Bonds to exchange their Bonds for ordinary shares in the Issuer by delivering a duly completed and signed conversion notice and nationality declaration to Deutsche Bank AG, London Branch by no later than the close of business on 14 June 2016 (the "Conversion Deadline").

As at today's date, the conversion price of the Bonds is €4.1976 per ordinary share in the Issuer of which €0.50, in the case of a conversion, per share corresponds to the nominal value and €3.6976 per share corresponds to share premium. The closing price of an ordinary share in the Issuer was €6.4671 on 5 May 2016.

The Conversion Deadline represents the final opportunity for Bondholders to convert their Bonds into ordinary shares in the Issuer before the redemption of all outstanding Bonds on the Optional Redemption Date.

The following document has been submitted to the National Storage Mechanism and will be available for inspection at http://www.morningstar.co.uk/uk/NSM in due course:

           Optional Redemption Notice dated 6 May 2016

This document will also be available in the Debtholders section of the IAG website at www.iairgroup.com shortly.

This notification is made in accordance with Listing Rule 9.6.1R and Disclosure and Transparency Rule 2.2.1R.

 

 

Enrique Dupuy de Lôme

Chief Financial Officer