Air France-KLM Secures a 1 Billion Euro Credit Line from 12 Banks
On Wednesday, Air France-KLM signed a new multi-purpose credit line of 1 billion euros with a syndicate of 12 international banks. This financial facility is intended to help the group refinance existing instruments and support its strategic objectives.
A 1 Billion Euro Credit Line with Twelve Banks
Air France-KLM has formalized a multi-purpose credit line of 1 billion euros with a syndicate consisting of twelve international banks. Natixis and Société Générale coordinated the transaction, while ABN AMRO, Banco Santander, BNP Paribas, Commerzbank, Crédit Agricole Corporate and Investment Bank, Crédit Industriel et Commercial, HSBC Continental Europe, Industrial and Commercial Bank of China Europe, ING Bank, and La Banque Postale served as bookrunners.
Initial Maturity in June 2028, Extendable by One Year
The credit line has an initial maturity set for June 2028 and includes an option to extend by one year at the lenders' discretion, potentially extending the maturity to June 2029. It can be drawn and repaid at the group's sole discretion and is intended to refinance existing financial instruments, as well as instruments related to potential merger and acquisition activities that may materialize from the second half of 2026, subject to applicable completion conditions.
Limited Impact on the Group's Debt Structure
This operation does not alter the group's gross debt or its current Net Debt / EBITDA ratio, which was 1.5x at the end of March. Air France-KLM continues to aim to maintain a leverage ratio between 1.5x and 2.0x. The group plans to continue its financing strategy through bond issuances to cover its annual debt repayments and hybrid instruments, with the goal of reducing its stock of hybrid instruments and simplifying its balance sheet.
