Deutsche Lufthansa AG repaid or cancelled all remaining government Stabilization funds from the Federal Republic of Germany on Friday, November 12. The repayment was made much earlier than originally planned. This was made possible primarily by the rising demand for air travel, the fast restructuring and transformation of the Lufthansa Group and the capital markets’ confidence in the company.
This means that, the Silent Participation II of the Economic Stabilization Fund of the Federal Republic of Germany (ESF) amounting to 1 billion euros was repaid in full. After the company had already repaid Silent Participation I in October, of which only 1.5 billion euros were drawn, the unused and remaining part has now been terminated too. Last February, the company had already repaid a KfW loan of 1 billion euros earlier than expected. This means that all German loans and Silent Participations, including interest, have now been repaid respectively terminated. Under this condition, ESF has undertaken to sell its stake in Deutsche Lufthansa AG amounting to approx. 14 percent of the share capital by October 2023 at the latest.
In June 2020, the shareholders of Deutsche Lufthansa AG cleared the way for the Stabilization measures of the Economic Stabilization Fund (ESF) of the Federal Republic of Germany. The German government’s package originally provided measures and loans totaling up to 9 billion euros, of which the company has drawn down a total of around 3.8 billion euros. This includes around 306 million euros with which the ESF built up its shareholding in Deutsche Lufthansa AG.
To refinance existing liabilities and the government Stabilization packages, the company has taken various debt and equity financing measures since autumn 2020. In doing so, it benefited from the steadily growing confidence of the financial markets in the future prospects of the Lufthansa Group.
In November 2020, the company made a “comeback” on the capital markets with a convertible bond with a total volume of 600 million euros and a corporate bond of 1 billion euros. In February 2021, Deutsche Lufthansa AG again successfully issued a bond for 1.6 billion euros. Another bond placement followed in July 2021 in the amount of 1 billion euros. In October 2021, the company successfully completed a capital increase. The gross proceeds from the capital increase amounted to 2.2 billion euros. Finally, on 9 November 2021, the Lufthansa Group was again successfully active on the financial market and issued a bond in the amount of 1.5 billion euros.