Mexican low-cost carrier Volaris (Y4, México City International) has successfully issued 15 million asset-backed trust notes, raising MXN1.5 billion pesos (USD85 million). The Mexican National Banking and Securities Commission had authorised the company to raise up to MXN5 billion (USD284 million), and this is the third capital raise under that allowance.

The notes have a five-year maturity term and carry an interest rate set at the 28-day interbank rate plus 215 basis points. Volaris has the notes secured against future collection rights under agreements entered with credit card processors for the sale of airline tickets and other related services.

ch-aviation has previously reported that Volaris faces debt maturities of USD50 million in 2023 and USD190 million in 2024. In 2021, it raised MXN1.5 billion (USD74.5 million at the time) on the local market, issuing five-year sustainability-linked bonds. In its September 2023 notification to the Mexican bourse regarding its latest trust notes issue, it said it would use the funds for general corporate purposes.

Volaris flies to 68 destinations in Mexico, Colombia, the United States, Guatemala, Peru, and Costa Rica. According to ch-aviation Commercial Aviation Aircraft Data data, the Indigo Partners-owned airline operates 116 aircraft, including a single A319-100, thirty-nine A320-200s, forty-five A320-200Ns, ten A321-100s, six A321-200Ns, and fifteen A321-200NX. In the 12 months to July 31, 2023, it carried over 33 million passengers.