Air France-KLM announces a E1.3b financing agreement with Apollo

Air France-KLM announced on Thursday a new financing agreement between one of its affiliate and funds and entities managed by Apollo Global Management in a bid to strengthen its balance sheet. The E1.3b financing will be accounted as quasi-equity under IFRS accounting standards, the airplane carrier said in a statement. Apollo has an option to increase the nominal amount to up to E1.5b, Air France-KLM said. The dedicated affiliate "will hold the trademark and most of the commercial partners contracts" for Flying Blue, the French and Dutch company's loyalty program, and "the exclusive issuer of miles for the airlines of the Group and partners." The new structure will not lead to any changes for Flying Blue members or have a dilutive effect for shareholders, the company adds. "This transaction will allow Air France-KLM to make an additional step towards its commitment to restore its IFRS equity and strengthen its balance sheet, in addition to net profit generation."<br/>