Air France-KLM announces the successful issuance of new hybrid bonds
Air France-KLM (AFLYY) has successfully issued €500 million in hybrid bonds with an annual fixed coupon of 5.75% and a yield of 5.875%. The undated and deeply subordinated bonds received strong market interest, with an orderbook exceeding €1.75 billion, representing a 3.5x oversubscription rate. The hybrid bonds, which will be rated BB by Fitch and B+ by S&P, qualify for 50% equity credit from both agencies. Both rating agencies reaffirmed Air France-KLM's long-term issuer ratings (BBB- from Fitch and BB+ from S&P) with Stable outlooks. The proceeds will be used for general corporate purposes, including potential refinancing of existing subordinated instruments. The bonds will be traded on Euronext Paris.
Air France-KLM (AFLYY) ha emesso con successo 500 milioni di euro in obbligazioni ibride con una cedola fissa annua del 5,75% e un rendimento del 5,875%. Le obbligazioni, senza scadenza e profondamente subordinate, hanno suscitato un forte interesse da parte del mercato, con un libro ordini che ha superato i 1,75 miliardi di euro, rappresentando un tasso di sovraccopertura di 3,5 volte. Le obbligazioni ibride, che saranno valutate BB da Fitch e B+ da S&P, beneficiano di un credito di capitale del 50% da entrambe le agenzie. Entrambe le agenzie di rating hanno confermato i rating a lungo termine di Air France-KLM (BBB- da Fitch e BB+ da S&P) con prospettive stabili. I proventi saranno utilizzati per scopi aziendali generali, inclusa la possibile rifinanziamento di strumenti subordinati esistenti. Le obbligazioni saranno negoziate su Euronext Paris.
Air France-KLM (AFLYY) ha emitido con éxito 500 millones de euros en bonos híbridos con un cupón fijo anual del 5,75% y un rendimiento del 5,875%. Los bonos sin vencimiento y profundamente subordinados recibieron un fuerte interés del mercado, con un libro de órdenes que superó los 1.750 millones de euros, representando una sobresuscripción de 3,5 veces. Los bonos híbridos, que serán calificados BB por Fitch y B+ por S&P, califican para un crédito de capital del 50% por ambas agencias. Ambas agencias de calificación reafirmaron las calificaciones a largo plazo de Air France-KLM (BBB- de Fitch y BB+ de S&P) con perspectivas estables. Los fondos se utilizarán para fines corporativos generales, incluyendo el posible refinanciamiento de instrumentos subordinados existentes. Los bonos se negociarán en Euronext París.
에어프랑스-KLM (AFLYY)은 연 5.75%의 고정 쿠폰과 5.875%의 수익률을 가진 5억 유로 규모의 하이브리드 채권을 성공적으로 발행했습니다. 만기 없는 심층 후순위 채권은 시장에서 강한 관심을 받았으며, 주문 규모는 17억 5천만 유로를 초과해 3.5배의 초과 청약률을 기록했습니다. 이 하이브리드 채권은 Fitch에서 BB, S&P에서 B+ 등급을 받으며 두 기관 모두로부터 50%의 자본 인정을 받습니다. 두 신용평가 기관은 에어프랑스-KLM의 장기 발행자 신용등급(피치 BBB-, S&P BB+)을 안정적 전망과 함께 재확인했습니다. 조달 자금은 기존 후순위 채권의 재융자를 포함한 일반 기업 목적에 사용될 예정이며, 채권은 유로넥스트 파리에서 거래됩니다.
Air France-KLM (AFLYY) a réussi à émettre 500 millions d'euros d'obligations hybrides avec un coupon fixe annuel de 5,75 % et un rendement de 5,875 %. Ces obligations perpétuelles et profondément subordonnées ont suscité un fort intérêt sur le marché, avec un carnet d'ordres dépassant 1,75 milliard d'euros, soit un taux de sursouscription de 3,5 fois. Les obligations hybrides, notées BB par Fitch et B+ par S&P, bénéficient d'une reconnaissance de 50 % en fonds propres auprès des deux agences. Les deux agences ont confirmé les notes à long terme d'Air France-KLM (BBB- chez Fitch et BB+ chez S&P) avec des perspectives stables. Les fonds seront utilisés à des fins générales d'entreprise, y compris le refinancement potentiel d'instruments subordonnés existants. Les obligations seront négociées sur Euronext Paris.
Air France-KLM (AFLYY) hat erfolgreich Hybridanleihen im Wert von 500 Millionen Euro mit einem festen jährlichen Kupon von 5,75 % und einer Rendite von 5,875 % begeben. Die unbefristeten und tief nachrangigen Anleihen stießen auf großes Marktinteresse, mit einem Orderbuch von über 1,75 Milliarden Euro, was einer Überzeichnung von 3,5-fach entspricht. Die Hybridanleihen, die von Fitch mit BB und von S&P mit B+ bewertet werden, qualifizieren sich bei beiden Agenturen für eine 50%ige Eigenkapitalanerkennung. Beide Ratingagenturen bestätigten die langfristigen Emittentenratings von Air France-KLM (BBB- von Fitch und BB+ von S&P) mit stabilem Ausblick. Die Erlöse werden für allgemeine Unternehmenszwecke verwendet, einschließlich einer möglichen Refinanzierung bestehender nachrangiger Instrumente. Die Anleihen werden an der Euronext Paris gehandelt.
- Strong market demand with 3.5x oversubscription rate, demonstrating investor confidence
- Bonds qualify for 50% equity credit with rating agencies
- Stable outlook maintained by both Fitch and S&P
- Will help optimize financing costs and maintain financial flexibility
- Additional debt obligation with 5.75% annual coupon payment requirement
- Lower credit rating for the hybrid bonds (BB/B+) compared to company rating
Paris, 15 May 2025
Air France-KLM announces the successful issuance of hybrid bonds for an amount of
Air France-KLM (the “Company”) successfully priced an issuance of
The issue of Hybrid Bonds was very well received by the market with an orderbook of over 1.75 billion euros (representing an oversubscription rate of 3.5 times). This result reflects investors' strong confidence in the Company's strategy and the strength of its credit profile.
The estimated net proceeds of the issue of the Hybrid Bonds will be used by the Company for general corporate purposes including the potential refinancing of existing subordinated instruments within the Group. This issue enables the Group to simplify its balance sheet and optimize its cost of financing while maintaining financial flexibility.
An application will be made for the Hybrid Bonds to be admitted to trading on Euronext Paris.
Investor Relations
Michiel Klinkers Marouane Mami
michiel.klinkers@airfranceklm.com marouane.mami@airfranceklm.com
Website: www.airfranceklm.com
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