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Lufthansa wants to raise half a billion with convertible bonds



Lufthansa wants to raise half a billion with convertible bonds

Lufthansa is planning to get fresh money with the help of a convertible loan. As a result, the largest German airline could try to replace the expensive government loans with cheaper funds.

Lufthansa, battered by the corona crisis, wants to get fresh money with a convertible bond. The airline announced on Tuesday in Frankfurt that papers with a volume of around 525 million euros and a final maturity of 2025, which can be converted into new and / or existing registered shares, are to be offered. However, under certain conditions, investors can be repaid as early as December 2023. Interest is to be paid on the papers with a semi-annual coupon of 2.25 to 2.75 percent per year.

The convertible loan is an attempt by the airline to use the money collected to replace the government loans, which have become more and more expensive over time, with cheaper money.

The collapse of air traffic in the corona crisis is making both Lufthansa and the entire industry difficult. The airline’s loss grew to just under 2 billion euros in the third quarter. The operational outflow of cash also accelerated again and is to be limited to a maximum of 350 million euros per month.

According to the latest information, the Lufthansa Group has liquid funds of 10.1 billion euros at its disposal. 6.3 billion euros of this comes from joint state aid of more than 9 billion euros from Germany, Austria, Switzerland and Belgium.

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