Deutsche Lufthansa AG has successfully issued a bond with a total volume of €1.6 billion. The bond with a denomination of €100,000 was placed in two tranches with a term of four and seven years respectively: The tranche with a term until February 11, 2025, has a volume of €750 million and bears interest of 2.875 percent per year. The tranche with a term until the February 11, 2028, has a volume of €850 million and bears interest of 3.75 percent per year.
Based on the long-term funds raised now and the borrowings of €2.1 billion in the second half of 2020, Lufthansa has secured the refinancing of all financial liabilities of around €2.6 billion due in 2021. As contractually agreed and as part of the stabilization measures last June, the raising of additional funds will lead to the repayment of Lufthansa’s KfW loan. Thus, the loan of €1 billion will be repaid to KfW ahead of schedule. After full repayment, Lufthansa will again have the aircraft pledged as collateral for the KfW loan at its disposal. (€1.00 = US$1.20 at time of publication.)Email Post to a Friend