Lufthansa Group successfully issues hybrid bond and strengthens its capital base

• Successful placement of 500 million euros hybrid bond 
• Attractive market environment in the beginning of the year enables early refinancing of the outstanding hybrid bond and strengthens capital base 
• First repayment date after 6 years complements Lufthansa Group’s maturity profile

Deutsche Lufthansa AG successfully issued an unsecured euro hybrid bond with a total volume of 500 million euros yesterday afternoon, January 8, following investor meetings on the previous day. The bond bears interest at 5.25 percent per annum and has a term of 30 years, with a first issuer call date after 6 years, i.e. on January 15^th, 2031.

A hybrid bond is a subordinated form of financing that, due to its long term, is evaluated by rating agencies with a 50% equity credit and thus contributes to further strengthening the rating profile of Deutsche Lufthansa AG. The company had already successfully issued a hybrid bond in 2015, which was refinanced early as part of yesterday’s transaction. Its repayment is planned for the next call date on February 12, 2026.

Dr. Till Streichert, Chief Financial Officer of Deutsche Lufthansa AG, says: "The successful transaction at the start of the year highlights the capital market’s confidence in our company and reaffirms our broad access to various financing instruments. The favorable market environment combined with strong investor demand enabled us to secure a placement at highly competitive financing terms. With a six-year term until first repayment date, this issuance complements our maturity profile perfectly"