Air France-KLM plans to raise €2.26 ($2.4bn) via a sale of new shares to build up its balance sheet and pay off Covid19 related state-aid debt. The share sale is expected to be a rights issue with proceeds being used to reimburse about €1.7bn ($1.8bn) of subordinate bonds issued in April last year and held by the French government. Business Times notes that the transaction will bring Air France-KLM closer to completing its plans for a €4bn ($4.3bn) capital increase to repay debt. Earlier in the week, the airline carrier said it was in talks with Apollo Global Management for a €500mn ($535mn) capital injection into an Air France affiliate that owns a pool of spare jetliner engines used in its maintenance operations.
The carrier’s bonds were trading slightly weak with its 1.875% 2025s down 0.6 points to 89.73, yielding 6.22%
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