The Lufthansa Group has signed their first-ever revolving credit facility with a broad consortium of international relationship banks. The completely unsecured facility of €2.0 billion will be available for three years, plus two one-year extension options.
On Friday (April 8, 2022), the Lufthansa Group announced the signing of the company’s inaugural credit facility, with a total value of €2.0 billion. The unsecured facility was originated through a broad syndicate of international relationship banks and will be available for three years, plus two one-year extension options. Other than customary Group guarantees, the facility is unsecured and has no financial covenants, and it will serve as an undrawn source of backup liquidity. Since the new credit facility has replaced approximately 0.7 in existing undrawn bilateral credit lines, the net result increases the Group’s available liquidity by around €1.3 billion.
In Friday’s announcment, Deutsche Lufthansa AG’s Chief Financial Officer, Remco Steenbergen, said,
“The signing of our first syndicated revolving credit facility further strengthens our liquidity reserve, increases the efficiency of our balance sheet in securing our liquidity target of 6-8 billion euros and demonstrates our strong long-standing relationships with our core banking group.”
The coordinating bookrunners and mandated lead arrangers for the transaction include HSBC Continental Europe S.A., Landesbank Baden-Württemberg and UniCredit Bank AG.
Source: Lufthansa Group