By Ilaria Grasso Macola
The shares of Air France-KLM have sunk as low as 12 per cent after the carrier issued €300m (£262.5m) worth of bonds convertible into shares.
Air France-KLM said the move would help it strengthen its capital and pay back the financial aid it received from the French government to stay afloat during the pandemic.
Funding – which was provided also by the Dutch government – amounted to a total of €10.4bn.
“This transaction marks a further step in the group’s initiatives to accelerate the repayment of the French state aid, continue to support the strengthening of equity capital, and help optimise financial costs,” Air France said in a statement published today.
The airline added that shipping giant CMA CGM – which owns a 9 per cent stake in the company – would participate in the pro-rata placement to its current shareholding.
No other shareholders – including the French and Dutch governments – have expressed an interest in the bond issuance.
The bond issuance is part of Air France’s decision to repay €4bn worth of pandemic aid.
The move sent shares down by almost 8 per cent when it was announced in February.
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