Lufthansa will get sturdy investor backing for two.1 bln euro money name

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LONDON/FRANKFURT, Oct 6 (Reuters) – German airline Lufthansa (LHAG.DE) obtained sturdy investor backing for a 2.14 billion euro ($2.47 billion) rights concern, offering some encouragement for journey firms seeking to climate the after results of the COVID-19 disaster.

The firm stated on Wednesday that its rights concern was 98.36% subscribed by traders and that it could place the remaining shares within the open market shortly.

The money will probably be used to repay a piece of the 9 billion euro ($10.38 billion) authorities bailout it obtained final 12 months to remain afloat all through the COVID pandemic, which resulted within the Economic Stabilisation Fund (ESF) taking a stake within the group.

Lufthansa is considered one of a number of airways and journey firms which have raised money or are planning to boost funds to get by the hardest interval for the sector in twenty years.

Britain’s easyJet (EZJ.L) lately accomplished a 1.2 billion pound ($1.63 billion) rights concern, whereas tourism group TUI (TUIGn.DE) is planning a 1.1 billion euro rights concern in coming weeks and Air France is believed to be contemplating its choices.

A stable deal for Lufthansa will present some encouragement for the others.

($1 = 0.7378 kilos)

($1 = 0.8672 euros)

Reporting by Abhinav Ramnarayan and Klaus Lauer, enhancing by Louise Heavens

Lufthansa planes are seen parked on the tarmac of Frankfurt Airport, Germany June 25, 2020. REUTERS/Kai Pfaffenbach