Air France-KLM Group has launched a €500 million ($647 million) five-year bond issue.
The bond offering has a nominal value of €100,000 and an annual coupon of 6.25%. The issue price was fixed at 99.451% of the nominal value. The financing will be reimbursed at par in January 2018.
This issue is led by Crédit Agricole-CIB, HSBC, ING, Natixis, Rabobank and Royal Bank of Scotland as joint lead managers and bookrunners.
Air France and KLM are guarantors of this transaction.
"The success of this issue confirms the confidence of investors in Air France-KLM and the measures implemented within the framework of the plan, Transform 2015, whose objective is the deleveraging of the group via a return to profitability," says the Air France-KLM.