TIDMIAG

RNS Number : 7874S

International Cons Airlines Group

18 March 2021

BONDS FINAL TERMS

IAG announces that, following the launch of the issue of two series of senior unsecured bonds (the "Offering") earlier today and as a continuation to the insider information official communication with record number 805, IAG has now set the final terms of the Bonds.

The demand has been higher than expected. The aggregate amount of the Offering is 1,200,000.00 euros, and given that the authorization of the Issuer's board of directors allows for the issue of the necessary increased amount, the aggregate offer size was fixed at EUR 1,200,000.00 split as follows:

-- The first tranche due 25 March 2025 will have a principal amount of EUR 500,000,000.00 (the " Series A Bonds ").

-- The second tranche due 25 March 2029 will have a principal amount of EUR 700,000,000.00 (the " Series B Bonds ", and together with the Series A Bonds, the "Bonds").

The Bonds will bear a fixed rate of interest of: (i) 2.75 per cent for the Series A Bonds and (ii) 3.75 per cent. per for the Series B Bonds, in both cases payable annually in arrears.

As a result of the bookbuilding process, the Series A Bonds and the Series B Bond will be both issued at 100 per cent of their principal amount, respectively, and, unless previously redeemed or purchased and cancelled, will be redeemed at 100 per cent of their principal amount on their respective maturity dates.

Settlement is expected to take place on or about 25 March 2021.

Goldman Sachs Bank Europe S.E., Morgan Stanley Europe S.E., Banco Bilbao Vizcaya Argentaria, S.A. and Banco Santander, S.A. act as Joint Global Co-ordinators and as Joint Lead Bookrunners. BofA Securities Europe SA and Crédit Agricole Corporate and Investment Bank act as Passive Bookrunners. MUFG Securities (Europe) N.V., NatWest Markets N.V. and Standard Chartered Bank act as Co- Managers.

Stephen Gunning

Chief Financial Officer

18 March 2021

LEI: 959800TZHQRUSH1ESL13

This announcement contains inside information and is disclosed in accordance with the Company's obligations under the Market Abuse Regulation (EU) No 596/2014.

IMPORTANT NOTICE

This announcement is directed exclusively at market professionals and institutional investors, is for information purposes only and is not to be relied upon in substitution for the exercise of independent judgement. It is not intended as investment advice and under no circumstances is it to be used or considered as an offer to sell, or a solicitation of an offer to buy, any security nor is it a recommendation to buy or sell any security. Any decision to purchase any of the securities should only be made on the basis of an independent review by you of the Issuer's publicly available information and based upon the final terms and conditions in respect of the Bonds. None of the Joint Lead Bookrunners, the Passive Bookrunners, the Joint Global Coordinators or the Co-Managers (together, the "Managers") nor any of their respective affiliates accepts any liability arising from the use of, or makes any representation as to the accuracy or completeness of, this announcement, the final terms and conditions or the Issuer's publicly available information.

This announcement is not for publication or distribution, directly or indirectly, in or into the United States. The distribution of this announcement may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This announcement and any offer when made are only addressed to and directed, in member states of the European Economic Area, at persons who are "qualified investors" within the meaning of Article 2(e) Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017, as amended (the "Prospectus Regulation") ("qualified investors"). Each person who initially acquires any securities or to whom any offer of securities may be made will be deemed to have represented, acknowledged and agreed that it is a "qualified investor" within the meaning of Article 2(e) of the Prospectus Regulation.

In the United Kingdom, this document is being distributed only to, and is directed only at, persons who are qualified investors within the meaning of Article 2(e) of the Prospectus Regulation, as amended, as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 who are (i) persons having professional experience in matters relating to investments falling within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (iii) high net worth entities falling within Article 49(2)(a) to (d) of the Order, or (ii) are other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons").This announcement must not be acted on or relied on (i) in the United Kingdom, by persons who are not relevant persons, and (ii) in any Member State of the European Economic Area, by persons who are not qualified investors. Any investment or investment activity to which this communication relates is available only to qualified investors in the EEA and relevant persons in the United Kingdom and will be engaged in only with relevant persons.

This announcement or electronic transmission hereof does not constitute or form part of an offer to sell securities or the solicitation of any offer to subscribe for or otherwise buy any securities to any person in the United States or in any jurisdiction to whom or in which such offer or solicitation is unlawful.

Each of the Managers is acting on behalf of the Issuer and no one else in connection with the offering of the Bonds and will not be responsible to any other person for providing the protections afforded to clients of such Managers or for providing advice in relation to the Bonds or any transaction, matter or arrangement referred to in this announcement.

In connection with the offering of the Bonds, the Managers and any of their affiliates, acting as investors for their own accounts or for the accounts of others, may subscribe for or purchase bonds and in that capacity may retain, purchase, sell, offer to sell or otherwise deal for their own accounts or for the accounts of others in such bonds and any other securities of the Issuer or related investments in connection with the Bonds, the Issuer or otherwise. Accordingly, references to the Bonds being issued, offered, subscribed, acquired, placed or otherwise dealt in should be read as including any issue or offer to, or subscription, acquisition, placing or dealing by, the Managers and any of their respective affiliates acting as investors for their own accounts. The Managers do not intend to disclose the extent of any such investment or transactions otherwise than in accordance with any legal or regulatory obligations to do so.

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March 18, 2021 14:39 ET (18:39 GMT)