Lufthansa launches $ 2.5 billion capital increase to repay state bailout


Frankfurt-Lufthansa is expected to raise € 2.14 billion ($ 2.51 billion) on Sunday to repay some of Germany’s top airlines’ national bailouts during the coronavirus crisis. He said he would start a capital increase.

According to Lufthansa, the highly anticipated rights issue application period, including the issuance of approximately 597.7 million new shares, is from September 22nd to October 5th.

Airlines have been floating throughout the COVID outbreak, using net income to repay some of the € 9 billion government bailouts they received last year, resulting in the Economic Stability Fund (ESF). ) Will invest in the group.

“We’ve always made it clear that we’ll keep the stabilization package for as long as we need it,” said CEO Carsten Spohr.

“Therefore, we are now proud to fulfill our promises and repay the measures sooner than originally expected. We are now fully focused on further transformation of the Lufthansa Group,” he said. Says.

Lufthansa said it expects to record positive adjusted earnings in the third quarter before interest and taxes are deducted, based on its July and August results.

Insiders told Reuters this year that Lufthansa plans to raise capital by about € 3 billion, but Spore told Reuters that lower pension debt had reduced the need for new capital in recent months.

Lufthansa said many funds under BlackRock’s control have signed underwriting agreements totaling € 300 million as part of a capital increase and have promised to fully exercise their subscription rights.

When participating in a rights issue, ESF promises to sell Lufthansa’s current 15.94% stake at the earliest six months after the sale is complete, but will be sold at the latest two years later. Said Lufthansa.

Lufthansa Chief Financial Officer Remco Stembergen said:

($ 1 = 0.8529 euros)

Christoph Steitz