Lufthansa has raised cash after issuing a bond worth €1 billion. As of March 31, the carrier had around €10.6 billion in cash and cash equivalents at hand.

Lufthansa raised the first €500 million due to a series of €100,000 three-year bonds with an annual interest rate of 2.0%. Another €500 million came via eight-year bonds with an interest rate of 3.5%. The demand for bonds was almost twice higher than the offer.

Remco Steenbergen, Chief Financial Officer of Deutsche Lufthansa AG, said: “The repeated successful placement of a corporate bond again confirms our access to a variety of advantageous financing instruments. The two tranches over three and eight years fit perfectly into our maturity profile.“

„In addition, we can obtain financing on the capital market at more favourable terms compared with the stabilization measures. We are continuing to work systematically on our restructuring measures in order to repay the government stabilization measures as quickly as possible.”

The funds raised will be used to further strengthen the Lufthansa Group’s liquidity. IAG, Air France-KLM, and Ryanair and more have all raised money using bonds this year.