Lufthansa raises $613m refinancing eight Airbus aircraft

Lufthansa refinanced eight aircraft in the second half of 2020. The transaction has generated E500m for the carrier, which is continuing to deal with the global aviation crisis’s impact, which has hit passenger numbers and profitability. Earlier Thursday, Lufthansa revealed that it had used eight aircraft as security in financial transactions. The aircraft have been refinanced, generating E500million in funds for the airline. ccording to a press release, the aircraft refinanced were five A350s and three Airbus A320 family aircraft. The funds were raised through sale and leaseback financing, secured loans, and secured promissory notes. The funds came from Banks, private equity funds, and corporate investors from Europe and Asia. The airline goes on to state that it has received attractive terms for the transactions. Commenting on the refinancing, Wilken Bormann, Executive VP Corporate Finance of the Lufthansa Group, said, “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.”<br/>