Lufthansa Group announces payment of deferred coupon of the hybrid bond 2015
The Economic Stabilization Fund of the Federal Republic of Germany has sold its shareholding in Deutsche Lufthansa AG in full in accordance with its press release of 14 September 2022. The stabilization of Deutsche Lufthansa AG has therefore ended. The behavioral commitments made to the European Commission and the associated restrictions for Deutsche Lufthansa AG are hence no longer valid.
On 19 May 2021, the Lufthansa Group had announced that the coupon payments for the hybrid bond issued in 2015 (maturity until 2075, WKN: A161YP) would be suspended for the duration of the government stabilization measures. This was based on the EU Commission’s view that the coupon payments constituted a breach of the state aid rules of the Temporary Framework for State Aid to Support the Economy in view of the outbreak of COVID-19 (EU Temporary Framework) and the conditions of the state aid approval of the stabilization measures in favor of Lufthansa.
Following the completion of the stabilization measures Deutsche Lufthansa AG has decided to make up for the deferred interest arrears on the hybrid bond in a timely manner. The details of the subsequent payment will be announced shortly in accordance with the terms and conditions of the bond.