Pandemic-hit Lufthansa raises further 1bn euros in bonds. (picture alliance/dpa/dpa-Zentralbild/POOL)
German airline Lufthansa has raised 1 billion more euros (1.18 billion dollars) on the capital market.
The company bond consisted of two tranches of 500 million euros, the MDAX-listed airline announced on Wednesday evening after the stock market closed.
The first tranche with an annual interest rate of 2.0 percent has a term until 2024, while the second tranche runs until 2029 with an annual interest rate of 3.5 per cent.
Lufthansa intends to use the newly raised money to strengthen its liquidity.
"We are continuing to work consistently on our restructuring measures in order to repay the government stabilization measures as quickly as possible," chief financial officer Remco Steenbergen said, according to the statement.
The governments of Germany, Austria, Switzerland and Belgium had promised Lufthansa emergency financial aid of 9 billion euros in view of the slump in business as a result of the pandemic last year.
In February Lufthansa issued a bond for 1 billion euros with investors and thus repaid part of the state aid it had received.
At the end of March, the group reported that it had cash funds of 10.6 billion euros and had used around 2.5 billion euros of the state financial aid at that time.
Lufthansa is also preparing for a capital increase to repay the state aid received. However, the executive board and supervisory board had reportedly not yet made a decision on the scope and timing.
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