Successful aircraft financing and borrower’s note loans in 2011

In the previous year fund-raising had consisted primarily of aircraft financing, but in 2011, despite a difficult market environment, we successfully completed transactions for both aircraft financing and borrower’s note loans.

At the same time, we optimised our financing structure. This involved the early repayment in May 2011 of the variable tranche of the borrower’s note loan taken out in 2009. The borrower’s note loans issued in November 2011 enabled us to extend the maturity of our financial debt and improve the interest terms. The total amount raised by these transactions was EUR 300m. EUR 198m came from a 5.5-year tranche, around EUR 73m from a 7-year tranche and nearly EUR 29m from a tranche with a maturity of 10 years. In other transactions in December a further EUR 105m was raised from a borrower’s note loan maturing in 5.2 years and EUR 45m from one maturing in 7 years.

Development of borrowings and net indebtedness (bar chart)

In the second half of 2011 we successfully concluded a number of aircraft financing transactions, raising a total of around EUR 226m. These include a French lease structure for one of the recently acquired Airbus A380s and four Japanese operating leases, each for one Airbus A321. These transactions again enabled Lufthansa to raise debt on very favourable terms.

We continued the funding of pension obligations begun in 2004. A contribution of EUR 736m was made in 2011 for the entire Group, EUR 528m of which went to the Lufthansa Pension Trust.

There was no significant off-balance sheet financing in the reporting year. However, various Lufthansa Group companies did enter into rental and/or operating lease contracts. These mainly relate to leases for aircraft and property, see the Notes to the consolidated financial statements, “Note 22”.

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