Lufthansa to raise $1.2 billion from junk bond markets

Lufthansa is set to raise 1 billion euros ($1.2 billion) through its first conventional bond issue since the onset of the coronavirus crisis, a lead manager said.

The German airline operator’s five-year bond was set to be priced on Tuesday at a yield of 3.125% after demand totalling more than 4.25 billion euros, the lead manager told Reuters.

After the pandemic first swept through Europe, Lufthansa needed a 9 billion euro German government bailout.

Its return to the conventional bond markets adds to the 600 million euros that Lufthansa raised through a convertible bond issue this month.