Deutsche Lufthansa AG organized itself one billion euros on the capital market. The group issued an unsecured bond with a term of 5,5 years. According to its own information, this was oversubscribed around four times after discussions with investors that were held yesterday

The securities with a denomination of 100.000 euros bear interest at 3,0 percent per year and have a term until May 29, 2026. The transaction followed the issue of a convertible bond of 600 million euros by Deutsche Lufthansa AG on November 10th. Both issues further strengthen the company's liquidity position. As of September 30, the company had cash and cash equivalents of 10,1 billion euros at its disposal (including the previously largely unused state aid from Germany, Switzerland, Austria and Belgium).

“The great success of both transactions underscores the trust the capital market has in our company and our restructuring measures. This means that we can continue to use a wide variety of advantageous financing instruments. We have already successfully refinanced most of our financial liabilities of 2021 billion euros, which will expire in 3,2, ”said Wilken Bormann, Executive Vice President Group Finance of the Lufthansa Group.

Furthermore, Lufthansa will not exercise the first right to terminate a hybrid bond due on August 12, 2075. The value is 500 million euros and earns interest at 5,125 percent. The aviation group can only terminate prematurely on February 12, 2026. In addition, the coupon will be reset on February 12, 2021. The interest rate is then 4,783 percent and the cycle will be five years.