Deutsche Lufthansa AG is back in the bond market for the fourth time in a year, just a week after posting an
unexpected return to profit, as the travel industry recovers.
Europe’s largest carrier is offering 1.5 billion euros ($1.7 billion) of notes as it capitalizes on the momentum provided by its first profit since the start of the pandemic, helped by a pickup in bookings and booming cargo demand.
Germany’s flagship airline, together with peers such as
British Airways,
Air France-KLM,
United Airlines and
Virgin Atlantic Airways Ltd. is set to benefit from the recent reopening of the U.S. to
visitors from Europe. A tourism rebound has also placed the bonds of budget competitors such as Wizz Air Holdings Plc and EasyJet Plc among the
best-performing newly-minted deals this year.
Lufthansa is talking to investors
to raise the bonds in two tranches. One is for 600 million euros with a 2-year maturity said to yield 1.625%. The other is a 900 million euros note with a 5.5-year maturity and 3% yield, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. The deal was upsized and expected price tightened from initial guidance following strong investor demand. BBG
