Lufthansa working on capital raise plan to combat coronavirus pandemic -sources

Lufthansa is working on a package to raise money from the debt and equity markets to help see it through the coronavirus pandemic that has caused the collapse of passenger flights, two sources familiar with the matter said. The plan could include a combination of convertible bonds, the sale of new shares and a rights issue, where existing shareholders buy additional shares in a company at a discount, the sources said, adding that it could happen within the next two weeks. Lufthansa declined to comment. Lufthansa has idled more than 90% of its fleet since the virus outbreak and has already held talks with the German government on providing liquidity, including through special loans from state development bank KfW. While details of what the state support will include have yet to be decided, the airline is also being advised by investment banks to unveil a capital raise plan, the sources said. Lufthansa is “now showing that it can create its own liquidity,” one of the sources said.<br/>