Air France-KLM successfully priced a 500 million euros note issuance under its EMTN Programme

Rhea-AI Summary

Air France-KLM (AFLYY) has successfully issued €500 million in senior unsecured notes under its EMTN Programme. The notes have a 5-year maturity with a 3.75% fixed annual coupon (3.866% yield).

The issuance, which will be used for general corporate purposes, attracted strong investor demand, reflecting confidence in the company's business model and financial structure. The Group's long-term debt is currently rated BB+ by S&P and BBB- by Fitch Ratings. Deutsche Bank, Crédit Agricole CIB, and Commerzbank served as Global Coordinators for the offering.

Positive

• Successfully raised €500 million through note issuance at attractive market conditions
• Strong investor demand reflecting confidence in company's business model
• Extension of average debt maturity profile through 5-year notes
• Relatively favorable 3.75% fixed annual coupon rate

Negative

• Increases overall debt burden with €500 million in new obligations
• Additional interest expense of approximately €18.75 million annually

News Market Reaction

+2.21%

1 alert

+2.21% News Effect

On the day this news was published, AFLYY gained 2.21%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Paris, 28 August 2025

Air France-KLM announces the successful issuance of a 500 million euros note under its EMTN Programme

AF-KLM successfully placed a €500 million senior unsecured notes under its EMTN (Euro Medium Term Notes) Programme. The maturity of the notes is 5 years, and the notes carry a fixed annual coupon of 3.75% (yield at 3.866%).

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

The issuance was priced at attractive levels due to strong and high-quality demand, reflecting AF-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.  

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

Deutsche Bank, Crédit Agricole CIB and Commerzbank acted as Global Coordinators, with CIC, Santander, SMBC, and Société Générale 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 500 million euros note issuance under its EMTN Programme

FAQ

What is the size and terms of Air France-KLM's (AFLYY) new note issuance?

Air France-KLM issued €500 million in senior unsecured notes with a 5-year maturity and a 3.75% fixed annual coupon (3.866% yield).

How will Air France-KLM use the proceeds from the €500 million note issuance?

The proceeds from the note issuance will be used for general corporate purposes.

What are Air France-KLM's current credit ratings?

Air France-KLM's long-term debt is rated BB+ by Standard & Poor's and BBB- by Fitch Ratings.

Which banks acted as Global Coordinators for Air France-KLM's note issuance?

Deutsche Bank, Crédit Agricole CIB, and Commerzbank acted as Global Coordinators for the note issuance.

What is the annual interest cost for Air France-KLM's new €500 million notes?

With a 3.75% fixed annual coupon, the annual interest cost for the €500 million notes will be approximately €18.75 million.