Lufthansa has used eight of its aircraft as security in a range of financing transactions which have raised €500 million ($614 million) since last July.

The German carrier says five of its Airbus A350s and three A320-family aircraft were used as collateral to raise funds through sale-and-leaseback financing, secured loans and secured promissory notes.

Lufthansa Airbus A320neo logo

Source: Lufthansa

Banks, private equity funds and corporate investors, “particularly from Europe and Asia”, participated in the financing, notes Lufthansa, adding that it was able to agree “attractive terms”. The €500 million raised is in addition to the €1.6 billion raised through a convertible and a corporate bond.

“We have taken another successful step in refinancing existing liabilities which are maturing in 2021,” states Wilken Bormann, executive vice-president of corporate finance at Lufthansa Group. “We have a wide range of financing instruments at our disposal, and aircraft financing will continue to play a key role in our financing strategy as it offers financially attractive conditions.”