Lufthansa will receive Economic Stabilization Fund (WSF) and loans of up to EUR 9 billion from the Federal Republic of Germany to help it recover from the COVID-19 losses.
The WSF will make silent participations of up to 5.7 billion Euros in total in the assets of Lufthansa. Of this amount, approximately EUR 4.7 billion is classified as equity.
In this amount, the silent participation is unlimited in time and can be terminated by the company on a quarterly basis in whole or in part.
In accordance with the agreed concept, the remuneration on the silent participations is 4% for the years 2020 and 2021, and rises in the following years to 9.5% in 2027.
Furthermore, the WSF will subscribe to shares by way of a capital increase in order to build up a 20% stake in the share capital of Deutsche Lufthansa AG.
The subscription price will be 2.56 Euro per share, so that the cash contribution will amount to about 300 million Euro. The WSF may also increase its stake to 25% plus one share in the event of a takeover of the company.
Finally, the stabilization measures are supplemented by a syndicated credit facility of up to EUR 3 billion with the participation of KfW and private banks with a term of three years. This facility is still subject to the approval of relevant bodies.