Lufthansa Group secures further liquidity on capital market

©Lufthansa

Deutsche Lufthansa AG has again successfully issued a bond with a total volume of €1 billion. The bond, with a denomination of €100,000, was placed in two tranches with a term of three and eight years respectively, and a volume of €500 million each: the tranche with a term until 2024 bears interest at 2.0% per year, the tranche maturing in 2029 3.5%.

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 repaid the KfW loan of €1 billion ahead of schedule. The long-term funds now raised will be used to further strengthen the Lufthansa Group’s liquidity.

As of March 31, the Group had cash and cash equivalents of €10.6 billion (including uncalled funds from the stabilization packages in Germany, Switzerland, Austria, and Belgium). At that time, Lufthansa had used around €2.5 billion of the €9 billion government stabilization packages.

In addition to this bond issue, the Lufthansa Group is continuing to prepare for a capital increase. The net proceeds would contribute to the repayment of stabilization measures of the German Economic Stabilization Fund (ESF) and to the restoration of a sustainable and efficient long-term capital structure. The Executive and Supervisory Boards have not yet taken a decision on the size and timing of a possible capital increase. In addition, approval by the ESF for this must be obtained. (€1.00 = US$1.18 at time of publication.

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