TUI Group confirmed it will launch a capital raising to fund repayment of the Covid loan it received from the German government.
TUI approved a fully subscribed capital increase.
It plans to use proceeds to repay the Covid loan in full and to ‘significantly reduce’ the KfW state bank credit line.
This will help reduce interest costs and debt.
TUI is looking to raise about €1.8 billion in the share issue.
TUI received a total of €4.3 billion state aid during the pandemic with about €2.6 billion outstanding to be repaid.
It received €2.1 billion credit line from KfW which TUI hopes to reduce by nearly half.