Lufthansa raises $1.2b in corporate bond sale

Lufthansa raised E1b in a corporate bond sale on Wednesday, boosting its finances after a state bail-out due to the COVID-19 pandemic. Lufthansa, which was hit hard by the ensuing tourism crisis, had already issued a bond in February to repay part of last year’s E9b bailout from state lender KfW. “The repeated successful placement of a corporate bond again confirms our access to a variety of advantageous financing instruments,” finance chief Remco Steenbergen said. The company said it issued three and eight-year bonds, confirming an earlier Reuters report that cited a memo from a lead manager on the deal, becoming the latest of several major airlines to tap the debt markets. The tranche with a term until 2024 bears interest of 2.0% per year, while it’s 3.5% for the tranche maturing in 2029, Lufthansa said. The shorter-dated tranche received demand of over E900m and the longer one 1b, according to the memo.<br/>