TUI Receives A Further 1.2 Billion Euros in Aid From the German Government

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Travel and aviation organization TUI receives a further 1.2 billion euros in emergency loans from the German government.

 

The aid must ensure the travel group with sufficient financial scope in case the corona pandemic is hindering international tourism for a more extended period.

TUI has reached an agreement on the extension of a credit facility of the German state bank KfW by more than 1.05 billion euros. In April, the tour operator already obtained a loan of 1.8 billion euros from this bank.

In conjunction with the new loan, TUI is issuing 150 million euros in convertible bonds to a German government fund for economic support in the corona crisis.

Converting all of this debt into stock would add up to a 9 percent stake.

TUI suffered a loss of 740.5 million euros in the first quarter due to the corona crisis, more than four times the loss a year earlier. The group spoke of the “worst crisis ever” and announced it would cut up to 8,000 jobs.

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