Deutsche Lufthansa AG has successfully placed an unsecured hybrid bond with a volume of 500 million euros on the market. The bond, which bears interest at 5,25 percent per year, has a term of 30 years and can be repaid early for the first time on January 15, 2031. This financing comes at a time of intensive investor discussions and, according to Chief Financial Officer Dr. Till Streichert, underlines the capital markets' trust in Lufthansa.
Hybrid bonds are considered subordinated financing instruments that are rated by rating agencies as 50 percent equity. This improves the company's financial structure and rating profile. The funds from the transaction will also be used to refinance a hybrid bond issued in 2015, which is scheduled for repayment on the call date of February 12, 2026.
Chief Financial Officer Streichert emphasized that the successful placement demonstrates Lufthansa's broad spectrum of financing options. The high demand from investors made it possible to issue the bond at attractive conditions and at the same time optimally adjust the company's maturity profile.