HomeTravel NewsTUI Raising €1.8bn to Pay Off Covid Debt

TUI Raising €1.8bn to Pay Off Covid Debt

TUI – the world’s largest holiday company and tour operator – is to raise €1.8bn, by way of a share offering, in a bid to lower its debt mountain and repay the State aid it received in Germany to cope with the Covid crisis.

The money will be raised via a rights issue, which sees new shares offered to existing stakeholders at a discounted price to its current share price.

The discounted price element of the plan has already hit TUI shares.

The plan will see TUI repay €420m to Germany’s Economic Stabilisation Fund, the WSF; pay out nearly €59m in bond repayments and reduce its current credit line with Germany’s State-owned investment and development bank KfW from €2.1bn to €1.1bn.

TUI said the money raise will improve its credit status, reduce its debt mountain by €1bn and allow it to concentrate on growth and recovery.

Geoff Percival
Geoff Percival
Geoff has worked in business, news, consumer and travel journalism for more than 25 years; having worked for and contributed to the likes of The Irish Examiner, Business & Finance, Business Plus, The Sunday Times, The Irish News, Senior Times, and The Sunday Tribune.

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