Lufthansa has bolstered its liquidity by placing a €600 million ($712 million) convertible bond.
The German airline group says the transaction was more than six times oversubscribed. The bonds, which have an annual coupon of 2%, are redeemable in November 2025.
Lufthansa Group executive board member for finance, Wilken Bormann, says: “The transaction proves that Lufthansa still has access to attractive financing despite the Corona pandemic and highlights the trust in Lufthansa as a borrower and the group’s good international reputation.
”It is another successful step towards refinancing existing liabilities and government stabilisation measures.”
In reporting third quarter losses on 5 November, Lufthansa Group said it had available liquidity of €10.1 billion as of the end of September. That includes €6.3 billion in so far unutilised stabilisation support measures from the respective governments in Germany, Switzerland, Austria and Belgium.