TUI AG: KfW arrangement signed – banking consortium approves German Federal government bridging loan
State bank KfW (Kreditanstalt für Wiederaufbau) and TUI AG confirm the signing of the state aid bridging loan for 1.8 billion euros. The loan had been committed by the German Federal Government on 27 March as part of the COVID-19 state support programme. TUI’s current Revolving Credit Facility “RCF” banking consortium supports the KfW loan and the addition of the 1.8 billion euros into TUI’s existing RCF credit line.
Following the international travel restrictions, TUI decided to apply for the KfW loan in order to cushion the unprecedented effects of the pandemic until normal business operations can be resumed. TUI like others had to temporarily suspend its tour operator, flight, hotel and cruise programmes. TUI is a very healthy company that was economically successful before the crisis – it has a strong strategic positioning, structure and substance. The current financial year 2020 had started off with extremely strong bookings.
TUI CEO Fritz Joussen: “Our employees are rightly proud of TUI’s success in recent years and they should continue to be in the future – after this crisis. We must bridge this unprecedented global situation. The German Government has acted quickly to support jobs and companies during these exceptional times. We are now preparing intensively for when our operations can resume after the Coronavirus crisis and firmly believe, people will continue to want to travel and explore other countries and cultures in the future.”
Hanover, 8 April 2020
The loan also concerns Belgium
TUI Belgium is one of the most successful subsidiaries of the TUI Group. In how much does the German loan concern Belgium?
“The credit is in principle intended for the whole of the TUI group, not just for Germany,” said Kuzey Alexander Esener, spokesperson for the group, to Belgian magazine Trends. He adds that “in an ideal scenario, we will not need this state loan if we can resume the business soon enough. However, there is too much uncertainty, we need a mattress financial, so we asked the state for this additional line of credit. “