TUI Group Clinches €1.8 Billion in Additional Funds
Holiday giant TUI has reached an agreement with various partners on a further financial rescue package of €1.8 billion.
The deal includes the German Economic Support Fund (WSF), KfW Entwicklungsbank (KfW), commercial banks and the company’s largest single shareholder Unifirm.
TUI said it was taking further precautions in view of the rising number of infections since autumn, strict travel restrictions in many countries and the resulting shorter booking times of customers.
The financial package is intended to ensure that the company can bridge the gap if the pandemic persists in 2021.
Following the first reports of vaccine successes, TUI added it expects the pandemic situation to improve in the course of the first half of 2021, leading to a greater return of holiday travel.
The package consists of silent participations of the WSF, a further credit line of the KfW, guarantees and a capital increase with subscription rights, which is to be resolved at an extraordinary general meeting of TUI in January.
Earlier in the year, TUI Group secured €3 billion in funding in two separate tranches from the German government.