Finnair Oyj — Capital/Financing Update 2012

Nov 13, 2012

Finnair issues EUR 120 million hybrid bond

Finnair issues EUR 120 million hybrid bond

Finnair PLC STOCK EXCHANGE RELEASE 13 NOVEMBER 2012 AT 3.15 PM
eet

PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED
STATES, CANADA, AUSTRALIA, HONG KONG, SOUTH AFRICA OR JAPAN OR ANY OTHER
JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.

Finnair Plc issues a EUR 120 million domestic hybrid bond.

The coupon rate of the bond is 8.875% per annum. The bond has no maturity but
the company may exercise an early redemption option after four years. The
settlement date of the bond is 26 November 2012. The hybrid bond was
significantly oversubscribed and was allocated to more than 60 investors. "We are pleased to have successfully issued a new hybrid bond. We are
especially delighted about the strong demand from domestic investors, which
indicates clear investor confidence in Finnair and its ability to pursue its
strategy successfully in the prevailing challenging market environment," says
Finnair CFO Erno Hildén.

The issuance of the hybrid bond was subject to a sufficient amount of tenders
for the currently outstanding hybrid bond. As disclosed in Finnair's stock
exchange release yesterday, the tender offer is due to expire at 2 pm EET on 21
November 2012, but Finnair has already received a sufficient amount of tenders
to proceed with the issuance of the new hybrid bond.

A hybrid bond is an instrument which is subordinated to the company's other
debt obligations and which is treated as equity in the IFRS financial
statements. A hybrid bond does not confer to its holder the right to vote at
shareholder meetings and does not dilute the holdings of the current
shareholders.

Nordea Markets is acting as coordinator and Nordea Markets and Pohjola Markets
jointly as bookrunners in the transaction. Castrén & Snellman Attorneys Ltd
acts as legal advisor to Finnair.

Further information:
Finnair Media Desk, tel. +358 9 818 4020, comms(at)finnair.com

Distribution:
NASDAQ OMX Helsinki
Principal media

Disclaimer:
This release is for informational purposes only and is not to be construed as
an offer to purchase or sell or a solicitation of an offer to purchase or sell
with respect to any hybrid bond. The distribution of this release and the
related material concerning the issuance of the new hybrid bond and the
invitation to tender the outstanding hybrid bond are prohibited by law in
certain countries. The new hybrid bond is not being offered and the tender
offer for the outstanding hybrid bond is not made to the public either inside
or outside of Finland. Persons resident outside of Finland may receive this
release and the related hybrid bond documentation only in compliance with
applicable exemptions or restrictions. Persons into whose possession this
release and the related hybrid bond documentation may come are required to
inform themselves about and comply with such restrictions. This release and the
related hybrid bond documentation may not be distributed or published in any
country or jurisdiction if to do so would constitute a violation of the
relevant laws of such jurisdiction or would require actions under the laws of a
state or jurisdiction other than Finland, including the USA, Canada, Australia,
Hong Kong, South Africa and Japan. The information contained herein shall not
constitute an offer to sell or tender, or a solicitation of an offer to buy or
sell Finnair's hybrid bond to any persons in any jurisdiction in which such
offer, solicitation or sale or tender would be unlawful. Finnair's
representatives assume no legal responsibility for such violations, regardless
of whether the parties contemplating investing in or divesting Finnair's hybrid
bond are aware of these restrictions or not. Finnair's hybrid bond has not been
and will not be registered under the US Securities Act of 1933, nor under any
securities legislation of any state in the United States, and it may not be
offered, sold, resold delivered, distributed, bought or transferred in the
United States or to US citizens or on behalf of US citizens, except pursuant to
an exemption from the registration requirements of the Securities Act of 1933
and any applicable state law legislation.