TAP Air Portugal secures €350M in bonds after restructuring success

TAP Air Portugal has announced plans to issue €350 million in senior bonds. The bonds carry a 4.750% coupon and will mature in 2031. This move follows the airline’s recent completion of its restructuring plan. The bond issuance comes just a week after TAP formally finalised its restructuring. Originally set at €300 million, the offering was later increased to €350 million. The settlement is scheduled for June 26, provided all standard conditions are met.

The bonds are restricted to professional investors and eligible counterparties, excluding retail buyers. They will not be registered with the U.S. Securities and Exchange Commission, so sales in the U.S. are prohibited without registration or an exemption. The proceeds will fund general corporate purposes and cover transaction-related fees.

In a separate development, the Portuguese government aims to select a new shareholder for TAP by September. The chosen bidder could start co-managing the airline in 2026, with a formal equity stake expected in the summer of 2027, pending approval from Brussels. The bond issue strengthens TAP’s financial position after its restructuring. The airline’s future ownership remains in progress, with a potential new shareholder slated to take over management next year. Brussels’ approval will determine the final timeline for the equity transfer.