KLM secures financing of EUR 3.4 billion to weather the COVID-19 crisis

posted on 26th June 2020 by Eddie Saunders
KLM secures financing of EUR 3.4 billion to weather the COVID-19 crisis

KLM announces that it has secured financing for a total amount of EUR 3.4 billion.

COVID-19 has caused aviation to virtually come to a standstill worldwide in recent months. The pandemic has an unprecedented impact on KLM Group’s activities. In order to cope with this difficult period and to secure the future of the company, KLM has already taken a large number of measures to maintain liquidity shortly after the outbreak. Nevertheless, KLM needs additional financing in the coming period. This has been the subject of intensive discussions with the Dutch state and banks in recent months.

“ Due to COVID-19 KLM is currently in an unprecedented crisis. The financing package is necessary to secure the long and difficult road of recovery in the coming period. This is a very important step and I express my gratitude on behalf of all KLM colleagues to the Dutch state and the banks for their confidence in our organisation and our future. With the financing package, KLM can continue to fulfil its important social role in economic recovery and sustainability. In the coming period, we will be working on the restoration of the route network and, on the other hand, on the development of the restructuring plan and the far-reaching conditions that have been imposed on the package.” – KLM CEO Pieter Elbers

The financing package consists of:

  • A 90% State guaranteed revolving credit facility of EUR 2.4 billion with a maturity of 5 years. The facility is granted by 11 banks, of which three Dutch banks and eight foreign banks.
  • A direct State loan of EUR 1 billion with a maturity of 5.5 years. The loan, provided by the Dutch State, will be subordinated to the revolving credit facility.