The Lufthansa Group has raised approximately €500 million in financing since July 2020 by collateralizing eight aircraft under favorable terms. This is in addition to €1.6 billion raised via convertible and corporate bonds.
On Wednesday (January 6, 2021), Deutsche Lufthansa AG announced that during the second half of 2020 the Group has raised €500 million in aircraft financing under favorable conditions. This is in addition to €1.6 billion raised via the issuance of convertible and corporate bonds. The financing was raised through sale and lease back transactions, secured loans and secured promissory notes, utilizing five Airbus A350s and three Airbus A320 Family aircraft as security. Participants in the financing included banks, private equity funds and corporate investors, particularly from Europe and Asia. The company was able to agree on attractive terms, as compared to the most recently issued bonds.
In Wednesday’s announcement, Lufthansa Group’s Executive Vice President – Corporate Finance, Wilken Bormann, said,
“We have taken another successful step in refinancing existing liabilities which are maturing in 2021. The transactions once again demonstrate the confidence the market has in our company and our restructuring measures. We have a wide range of financing instruments at our disposal and aircraft financing will continue to play a key role in our financing strategy as it offers financially attractive conditions.”
Source: Lufthansa