Lufthansa aims for €3b capital boost

BERLIN:

Lufthansa is working with Deutsche Bank and Bank of America to sound out investors about a capital increase worth roughly €3 billion ($3.7 billion), possibly as soon as June, people close to the matter said. The final size and timing of the rights issue to repay state aid Lufthansa received during the pandemic will be subject to market conditions and the German airline is expected to opt for a June/July or September/October window, the people said. Lufthansa and the banks, the lead advisers on the deal, declined to comment. Lufthansa shareholders this month approved a potential capital increase of up to €5.5 billion, though Finance Chief Remco Steenbergen has said that was just the sum of the two tranches of hybrid capital, dubbed silent participation, it received as part of a 2020 bailout.

Published in The Express Tribune, May 11^th, 2021.

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