Lufthansa has launched a new bond issue, this time worth EUR 1.6 billion, to increase its liquidity and remain solvent during this challenging period for the aviation industry, much like many other airlines worldwide that have accessed a variety of financial instruments to secure their balance sheets, in addition to accessing government loans and aircraft sale-and-leaseback arrangements.<\/p>\n\n\n\n
According to Lufthansa, each bond was sold at a price of EUR 100,000 and was placed in two tranches for terms of four and seven years, respectively. The first tranche of 4-year bonds expires on February 11, 2028. These bonds have a volume of EUR 850 million with an annual interest rate of 3.75%.<\/p>\n\n\n\n
The additional fundraising will allow the company to repay a loan taken from the German development bank KfW, as contractually agreed upon as part of the stabilization measures in June last year. With the long-term funds raised and EUR 2.1 billion in cash borrowed in the second half of 2020, Lufthansa has secured the refinancing of all its financial debts of approximately EUR 2.6 billion maturing in 2021.<\/p>\n\n
The total value of the new bond issue is EUR 1.6 billion, aimed at increasing liquidity and ensuring solvency.<\/p>\nWhat are the maturity terms for the new bonds?<\/strong>\n The bonds were issued in two tranches with maturity terms of four and seven years, respectively.<\/p>\nHow will Lufthansa use the funds raised from this issuance?<\/strong>\n The funds will be used to repay a loan from the German development bank KfW and to refinance debts maturing in 2021.<\/p>","protected":false},"excerpt":{"rendered":" Lufthansa has launched a new bond issue, this time worth EUR 1.6 billion, to increase its liquidity and remain solvent during this challenging period for the aviation industry, much like many other airlines worldwide that have accessed a variety of financial instruments to secure their balance sheets, in addition to accessing government loans and aircraft…<\/p>\n","protected":false},"author":0,"featured_media":69440,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2856],"tags":[230],"thb-sponsors":[],"class_list":["post-117937","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conectivity","tag-lufthansa"],"article_style_override":"on","post-style":"style2","post_via":"","post-top-image":"https:\/\/rhn.ro\/wp-content\/uploads\/2019\/11\/transport-2.jpg","_links":{"self":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts\/117937","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/comments?post=117937"}],"version-history":[{"count":0,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts\/117937\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/media\/69440"}],"wp:attachment":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/media?parent=117937"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/categories?post=117937"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/tags?post=117937"},{"taxonomy":"thb-sponsors","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/thb-sponsors?post=117937"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}