Air France-KLM announces the successful issuance of a 650 million euros note under its EMTN Program

Rhea-AI Summary

Air France-KLM (OTC:AFLYY) priced a €650 million senior unsecured note under its EMTN Program on 8 January 2026. The notes mature in 5 years, carry a fixed coupon of 3.875% (yield fixed at 4.033%) and were increased from an initial €500 million due to strong demand.

The transaction saw over 150 institutional orders and a peak orderbook above €3.5 billion, producing the lowest credit spread in the group's history. Proceeds will be used for general corporate purposes and to redeem a €500 million Sustainability Linked Bond (coupon 7.25%) in May 2026. Long-term ratings: S&P BB+ and Fitch BBB-.

Positive

• Issued €650m five-year senior unsecured notes
• Fixed coupon at 3.875% with yield 4.033%
• Orderbook peaked >€3.5bn (150+ institutional orders)
• Enabled redemption of €500m SLD due May 2026

Negative

• None.

News Market Reaction – AFLYY

-1.69%

1 alert

-1.69% News Effect

On the day this news was published, AFLYY declined 1.69%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

                                                                                                                                                                                                                                                                     Paris, 08 January 2026

Air France-KLM announces the successful issuance of a 650 million euros note under its EMTN Program

AF-KLM successfully placed a €650 million senior unsecured notes under its EMTN (Euro Medium Term Notes) Program. The maturity of the notes is 5 years, and the notes carry a fixed annual coupon of 3.875% (the yield was fixed at 4.033%).

This transaction enables the Group to take advantage of attractive market conditions and extend the average maturity of its debt.

The transaction attracted more than 150 orders from institutional investors with a peak orderbook in excess of €3.5Bn. The high level of oversubscription and quality of demand allowed the Group to achieve the lowest credit spread in its history and to increase the size from €500 million to €650 million.

The success of this transaction reflects Air France-KLM 's strong credit quality and investor confidence in its business model, growth potential and financial structure.

The proceeds of the issue will be used for general corporate purposes and to redeem the first tranche of the Sustainability Linked Bonds (€500m, coupon 7.25%) in May 2026.  

The Group's long-term debt is rated BB+ by Standard & Poor's and BBB- by Fitch Ratings.

J.P. Morgan, Morgan Stanley and Société Générale acted as Global Coordinators, with Bank of China, Commerzbank, HSBC, La Banque Postale and Natixis acting as Joint Active Bookrunners.

Investor Relations                                                        

Michiel Klinkers                        Marouane Mami                                                            

michiel.klinkers@airfranceklm.com        marouane.mami@airfranceklm.com

Website: www.airfranceklm.com

Attachment

• Air France-KLM successfully priced a 650 million euros note issuance under its EMTN Programme

FAQ

What size and maturity was the Air France-KLM (AFLYY) EMTN issuance on 8 January 2026?

Air France-KLM issued a €650 million senior unsecured EMTN with a 5-year maturity.

What coupon and yield did Air France-KLM (AFLYY) secure for the €650m note?

The notes carry a fixed coupon of 3.875% and the yield was fixed at 4.033%.

How strong was investor demand for Air France-KLM's (AFLYY) January 2026 note?

The transaction drew more than 150 institutional orders and a peak orderbook in excess of €3.5bn.

What will Air France-KLM (AFLYY) use the proceeds of the €650m EMTN for?

Proceeds will be used for general corporate purposes and to redeem a €500m Sustainability Linked Bond in May 2026.

Did the Air France-KLM (AFLYY) deal improve its credit spread or pricing?

Yes, the high demand allowed the group to achieve the lowest credit spread in its history and increase size from €500m to €650m.

What are Air France-KLM's (AFLYY) long-term credit ratings after the issuance?

The group's long-term debt is rated BB+ by S&P and BBB- by Fitch.