Lufthansa Group successfully secures further liquidity on the capital market

posted on 8th July 2021 by Eddie Saunders
Lufthansa Group successfully secures further liquidity on the capital market

Deutsche Lufthansa AG has again successfully issued a bond with a total volume of 1 billion euros.

The bond with a denomination of 100,000 euros was placed in two tranches with a term of three and eight years respectively and a volume of 500 million euros each: The tranche with a term until 2024 bears interest at 2.0 percent per year, the tranche maturing in 2029 3.5 percent.

With the placement of the last corporate bond in February 2021, the Group already secured the refinancing of all financial liabilities due in 2021 and also repaid the KfW loan of 1 billion euros ahead of schedule.

The long-term funds now raised will be used to further strengthen the Lufthansa Group’s liquidity.

“The repeated successful placement of a corporate bond again confirms our access to a variety of advantageous financing instruments,” said Remco Steenbergen, Chief Financial Officer of Deutsche Lufthansa AG.

“The two tranches over three and eight years fit perfectly into our maturity profile.

“In addition, we can obtain financing on the capital market at more favourable terms compared with the stabilization measures.

“We are continuing to work systematically on our restructuring measures in order to repay the government stabilization measures as quickly as possible,”