IAG launches €825m buyback of 2028 convertible bonds

International Consolidated Airlines ( (GB:IAG) ) has shared an announcement.

International Consolidated Airlines Group has launched a reverse bookbuild to repurchase up to the full €825 million outstanding of its 1.125% senior unsecured convertible bonds due 2028, which are listed on the Frankfurt Open Market. The offer, restricted to eligible bondholders outside the U.S., will see holders paid a cash amount based on an initial €138,950 per €100,000 of principal, adjusted by IAG’s share price performance, plus accrued interest.

The company intends to cancel any bonds bought back and may subsequently redeem any remaining bonds if the outstanding amount falls to 15% or less of the original issue size. The move gives IAG greater flexibility to manage its balance sheet and capital structure, with scope to conduct additional market purchases or exercise call options on the bonds, potentially reducing future dilution and interest costs for existing shareholders and bond investors.

The most recent analyst rating on (GB:IAG) stock is a Buy with a £4.70 price target. To see the full list of analyst forecasts on International Consolidated Airlines stock, see the GB:IAG Stock Forecast page.

Spark’s Take on IAG Stock

According to Spark, TipRanks’ AI Analyst, IAG is a Neutral.

The score is driven primarily by solid financial performance (strong margins and cash generation, though leverage and softer 2025 revenue/FCF conversion add risk) and an attractive valuation. These positives are tempered by weak technicals (below key moving averages with negative MACD) and earnings-call headwinds (FX/fuel volatility, engine constraints, and litigation/cost pressures) despite confident guidance and active shareholder returns.

To see Spark’s full report on IAG stock, click here.

More about International Consolidated Airlines

International Consolidated Airlines Group is a major European airline holding company, operating multiple flag carriers and focused on passenger and cargo air transport across key transatlantic and intra-European markets. The group’s capital structure includes listed equity and various debt instruments, including senior unsecured convertible bonds traded on European exchanges.

Average Trading Volume: 24,212,368

Technical Sentiment Signal: Buy

Current Market Cap: £17.2B

Learn more about IAG stock on TipRanks’ Stock Analysis page.