Lufthansa raises additional cash with secured aircraft deals

Since July 2020, Deutsche Lufthansa has raised a total of around €500 million using aircraft as security in eight financing transactions. The airline group said that it had been able to secure additional funds on top of the €1.6 billion raised via a convertible bond and a corporate bond. The five Airbus A350s and three aircraft from the A320 family were used as securities for various financing instruments. Funds were raised through sale and lease back financing, secured loans and secured promissory notes (Schuldscheindarlehen). Banks, private equity funds and corporate investors, particularly from Europe and Asia, participated in the financing.