Lufthansa gets strong investor backing for E2.1b cash call

Lufthansa received strong investor backing for a E2.14b rights issue, providing some encouragement for travel companies looking to weather the after effects of the COVID-19 crisis. The company said on Wednesday that its rights issue was 98.36% subscribed by investors, and the remainder was quickly sold in the open market soon after. The cash will be used to repay a chunk of the E9b government bailout it received last year to stay afloat throughout the COVID pandemic, which resulted in the Economic Stabilisation Fund (ESF) taking a 15% stake in the group. This was cut slightly in the rights issue to 14.09%, the German state finance agency said on Wednesday. Sentiment towards the airlines and travel sectors was boosted in September by the lifting of restrictions on travel between the United States and Europe in particular.<br/>