Airline Revenue Management

Lufthansa Raised 500 Million Euros in Aircraft Financing in the Second Half of 2020

Lufthansa Airbus A350
Lufthansa Airbus A350 | Image courtesy of Lufthansa

Eight aircraft used as security for financing at favourable conditions

Since July 2020, Deutsche Lufthansa AG has raised a total of around 500 million euros by using aircraft as security in eight financing transactions. This enabled the Group to secure additional funds on top of the 1.6 billion euros raised via a convertible bond and a corporate bond.

The five Airbus A350s and three aircraft from the A320 family were used as securities for various financing instruments. Funds were raised through sale and leaseback financing, secured loans and secured promissory notes (Schuldscheindarlehen). Banks, private equity funds and corporate investors, particularly from Europe and Asia, participated in the financing. Lufthansa was also able to agree upon attractive terms compared with the most recently issued bonds.

“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,” said Wilken Bormann, Executive Vice President Corporate Finance of the Lufthansa Group.

Source: Lufthansa

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