Lufthansa collects €500 million using aircraft as securities

On January 6, 2021, Lufthansa (LHAB) (LHA) announced that it gathered a total of €500 million in the second half of 2020 by using eight aircraft as security in eight financing transactions at favourable conditions. The €500 million collected comes on top of the €1.6 billion the airline already raised through a convertible bond and a corporate bond.. 

“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,” Wilken Bormann Executive Vice President Corporate Finance of the Lufthansa Group, said, adding that aircraft financing continues to play an important role in financing strategy at Lufthansa (LHAB) (LHA).

Lufthansa (LHAB) (LHA) used eight aircraft, five Airbus A350s and three A320s, as securities for the airline to raise funds and cover various financial liabilities.

The aircraft were used for sales and leaseback financing, and as securities for loans and promissory notes. Corporate investors, private equity funds and banks from Europe as well as Asia participated in Lufthansa’s (LHAB) (LHA) financing, according to the statement. 

“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,” Bormann said.

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