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. 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," said Remco Steenbergen, Chief Financial Officer of Deutsche Lufthansa AG.
As of March 31, the Group had cash and cash equivalents of 10.6 billion euros (including uncalled funds from the stabilization packages in Germany, Switzerland, Austria and Belgium). At that time, Lufthansa had used around 2.5 billion euros of the 9 billion euros government stabilization packages.
In addition to today's bond issue, the Lufthansa Group is continuing to make preparations for a capital increase. The net proceeds would contribute in particular 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 has to be obtained.