Deutsche Lufthansa AG today successfully issued an unsecured Eurobond with a total volume of 1 billion euros. The bond with a term of 5.5 years was oversubscribed by about 4 times after successful investor meetings the day before.
The bonds with a denomination of 100,000 euros bear interest of 3.0 percent per year and mature on 29 May 2026. The transaction followed the successful issue of a convertible bond of 600 million euros by Deutsche Lufthansa AG on November 10. Both issues further strengthen the company’s liquidity position. As of September 30, the company had liquidity of EUR 10.1 billion at its disposal (including the largely unused stabilization measures in Germany, Switzerland, Austria and Belgium).
“The great success of both transactions underlines the confidence of the capital market in our company and our restructuring measures. This allows us to continue to use a wide variety of advantageous financing instruments. We have already successfully refinanced the majority of our financial maturities of EUR 3.2 billion in 2021,” said Wilken Bormann, Executive Vice President Group Finance of Lufthansa Group.
Extension of the EUR 500 million 5.125 percent hybrid bond
Deutsche Lufthansa AG has also decided not to exercise the first call right of its 500 million euro hybrid bond, which matures on 12 August 2075 and carries 5.125 percent interest. The right to call the bond can therefore be exercised again on February 12, 2026. Furthermore, the coupon will be reset on February 12, 2021 (to the then applicable 5-year market interest rate plus a margin of 4.783 percent, as detailed in the hybrid bond prospectus).