Air France-KLM today announced the full repayment of its bank loan guaranteed by the French State (“PGE”), making a final step towards the full repayment of States support liquidity measures

Rhea-AI Summary

Air France-KLM has announced the full repayment of its €2.5 billion bank loan guaranteed by the French State, marking the completion of the liquidity support measures initiated during the Covid-19 crisis. This repayment was facilitated by a solid cash position and €1 billion raised through a Sustainability-Linked Bond issued in January 2023. The Group's cash reserves stood at €10.6 billion at the end of 2022, contributing to a strong operational performance with improved revenues and net income. The repayment is expected to enhance the Group's debt profile, reduce financial costs, and decrease exposure to floating rates.

Positive

• Full repayment of €2.5 billion loan improves debt profile and reduces financial costs.
• Strong cash position of €10.6 billion supports repayment efforts.
• Successful issuance of €1 billion Sustainability-Linked Bond boosts liquidity.

Negative

• None.

Paris, 15 March 2023

Air France-KLM today announced the full repayment of its bank loan guaranteed by the French State (“PGE”), making a final step towards the full repayment of States support liquidity measures.

• Air France-KLM has fully repaid the remaining €2.5 billion from its initial
  €4 billion Bank loan guaranteed by the French State, granted during the Covid-19 crisis.
• The Group’s solid cash position combined with the €1 billion proceeds of the Sustainability-Linked Bond issued in January 2023, has enabled to accelerate and close the repayment in full of the outstanding “PGE”.
• This full repayment will contribute to smoothing the Group’s debt profile, reduce financial costs and limit residual exposure to floating rates.
  
  

In 2022, Air France-KLM recorded a strong rebound of its revenues, an improved operating result and a positive net income resulting in a strong cash position of €10.6 billion by the end of 2022. On the back of this robust operational performance, the Group successfully issued in January 2023 an inaugural Sustainability-Linked Bond for a total aggregate amount of €1.0 billion.

Given this context, Air France-KLM has now reached an agreement with the French State and the syndicate of nine banks participating in the “PGE” to proceed with the full repayment of the outstanding €2.5 billion, as announced during the FY 2022 results presentation on February 17^th, 2023. To do so, the Group used the €1.0 billion proceeds of the Sustainability-Linked Bond and €1.5 billion of its available cash. This full repayment will contribute to smoothing the Group’s debt profile, reduce financial costs and limit residual exposure to floating rates, and marks a final step towards the full repayment of the current French State liquidity support measures.

Investor Relations                                                        

Michiel Klinkers                                Marouane Mami                                

                                                     

michiel.klinkers@airfranceklm.com                mamami@airfranceklm.com

Website: www.airfranceklm.com

Attachment

• 2023 03 15 PR_AFKLM_PGE_full_redemption

FAQ

What did Air France-KLM announce on March 15, 2023?

Air France-KLM announced the full repayment of its €2.5 billion bank loan guaranteed by the French State.

How much cash did Air France-KLM have at the end of 2022?

Air France-KLM reported a strong cash position of €10.6 billion by the end of 2022.

What financial instrument did Air France-KLM use to facilitate the loan repayment?

Air France-KLM utilized €1 billion proceeds from a Sustainability-Linked Bond issued in January 2023 for the loan repayment.

What will the repayment of the loan contribute to for Air France-KLM?

The repayment will smooth the Group's debt profile, reduce financial costs, and limit exposure to floating rates.