Air France-KLM Successfully Issues €650 Million in Bonds

Air France-KLM has successfully issued new bonds totaling €650 million under its Euro Medium Term Note Programme. These bonds have a 5-year term and a coupon rate of 4.625%. Anticipated ratings for the new issuance are BBB- by Fitch and BB+ by Standard & Poor’s.

The placement attracted an orderbook of over €2.8 billion, significantly oversubscribing by approximately 4.3 times. This high demand underlines strong investor confidence in the airline’s financial health and future prospects.

In addition, the company has launched a tender offer aimed at repurchasing two series of existing notes set to mature in 2025 and 2026, respectively valued at €750 million and €500 million. The raised funds from the new bonds will primarily serve to refinance these older debts and support other corporate financial needs.

The new bonds are also slated for admission to trading on the Euronext Paris, providing further opportunity for investment and trade.