Air Berlin is today launching a €120m ($160m) convertible bond with a maturity of six years. The bonds are issued at 100 per cent of nominal value with a six per cent annual interest rate. The airline will use the proceeds to raise capital, and for general business purposes. “The offering is aimed at international institutional investors outside the US,” the airline said in a statement. It added that Air Berlin’s “major shareholder and strategic partner, Etihad Airways, intends to subscribe to 29.2 per cent of the convertible bond”. Credit Suisse is mandated as sole lead manager and sole bookrunner for the offering.