Lufthansa has raised 500 million euros in aircraft financing since July 2020
Lufthansa raises 500 million euros to refinance its existing liabilities due in 2021
As of July 2020, Deutsche Lufthansa AG has raised a total of around € 500 million using aircraft as collateral in eight financing deals. This enabled the Group to secure additional funds in addition to the 1.6 billion euros raised via a convertible bond and a corporate bond.
The five Airbus A350s and the three A320 Family aircraft were used as collateral for various financing instruments. The funds were raised through sale and leaseback financing, secured loans and secured promissory notes (Schuldscheindarlehen). Banks, private equity funds and institutional investors, in particular from Europe and Asia, participated in the financing. Lufthansa was also able to agree on attractive terms compared to the most recently issued bonds.
“We have taken another successful step in the refinancing of existing liabilities maturing in 2021. The transactions once again demonstrate the market’s confidence in our business and our restructuring measures. We have a wide range of financing instruments and aircraft financing will continue to play a key role in our financing strategy as it offers financially attractive conditions ”, said Wilken Bormann, Executive Vice President Corporate Finance of the group Lufthansa.