AMSTERDAM- Wizz Air was due to raise 500 million euros ($608 million) from its first ever bond sale on Wednesday, according to a lead manager.

The three-year bond will price for a yield of 1.35% and has received 2.2 billion euros of demand from investors, the lead manager said. It is part of the company's medium-term bond issuance programme.

Under the programme, launched in August, the budget carrier can have up to 3 billion euros of bonds outstanding at any given time.

The programme had been in the making since 2018, according to Refinitiv capital markets news service IFR. 

After issuance paused with the outbreak of the COVID-19 pandemic, a number of airlines - among the worst hit sectors - sold bonds in Europe's credit markets in the second half of 2020, including Ryanair and Lufthansa. 

Rating agencies expect low-cost carriers like Wizz Air and Ryanair to emerge in better shape than peers once air travel recovers.

Wizz Air said earlier in January it had 1.6 billion euros in cash, which means it could survive for two years even if all planes are grounded. 

Barclays, BNP Paribas, Citi and JP Morgan arranged Wizz Air's bond sale, according to the lead manager.

($1 = 0.8220 euros)

(Reporting by Yoruk Bahceli. Editing by Mark Potter) ((Yoruk.Bahceli@thomsonreuters.com; +44 20 7542 7571; Reuters Messaging: yoruk.bahceli@thomsonreuters.com))