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 Airbus A321neo wing

Source: Lufthansa

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.