Lufthansa launches offering for 525 million euros in convertible bonds

BERLIN (Reuters) – Germany’s Lufthansa on Tuesday launched an offering for around 525 million euros ($620.97 million) of senior unsecured convertible bonds due in 2025.

The airline, which is reeling from the impact of the coronavirus pandemic on travel, said it would use the proceeds for general corporate purposes.

Lufthansa said the bonds will be convertible into new and or existing shares and will be offered through an accelerated bookbuilding process to institutional investors.

It said the bonds will be offered with a coupon between 2.25% and 2.75% per annum, payable semi-annually in arrears.

($1 = 0.8455 euros)

(Reporting by Caroline Copley; Editing by Michelle Adair)