TUI Group raising EUR1.1 billion in fresh funding

TUI plans by raise €1.1 billion by selling new stock.

The rights offering will allow the tour operator to ‘reduce interest costs and net debt by reducing current drawings,’ it said.

The company has raised billions from three bailouts since the beginning of the pandemic.

It is offering 523.5 million new discounted shares priced at €2.15.

Existing shareholders are entitled to 10 new shares for every 21 shares already held.

“Following transformation and restructuring of business areas and the relaunch of tourism in recent months, our focus is now on refinancing and reducing the utilisation of government loans,” TUI said.

“We want to, we can and we will find our way back to economic strength.”

It says forward booking for summer 2022 sales are strong and set to reach pre-pandemic levels.

More than 2.6 million customers took a TUI holiday this July and August 2021, operating at a capacity of 42% and 48% respectively.

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