TUI AG successfully issues 500 million euros in sustainability-linked senior notes

Thursday, February 29, 2024

TUI AG has successfully issued sustainability-linked senior notes totaling 500 million euros, with a maturity of five years. The original offer was increased by 200 million euros due to high investor demand. Proceeds from the issuance will be allocated towards repaying existing liabilities, reducing the KfW credit line, and covering associated bond expenses.

The notes carry an annual coupon rate of 5.875% and will be issued at 98.93% of their face value. The coupon rate is tied to achieving a specific sustainability goal: reducing TUI group’s Airlines CO2e-emissions per Revenue Passenger Kilometer by at least 11% by the end of the financial year ending on September 30, 2026, compared to the fiscal year ended September 30, 2019. Failure to meet this target will result in a 25 basis point increase in the annual coupon rate for the remainder of the term.

It’s important to note that this press release is not intended for distribution in the United States, Canada, Australia, Japan, or any other jurisdiction where such distribution would be unlawful.

Furthermore, this release is for informational purposes only and does not constitute a prospectus or offer to sell securities in the United States or any other jurisdiction. The notes have not been registered under the U.S. Securities Act of 1933, and they will not be registered in the future. Securities Act of 1933 and may only be offered to qualified institutional buyers under Rule 144A or to certain persons outside the United States in compliance with Regulation S.

Additionally, the notes are not intended for retail investors in the European Economic Area (EEA) or the UK. It’s emphasized that investors should conduct their own assessment of the notes from a sustainability standpoint.

The press release also includes forward-looking statements, which involve inherent risks and uncertainties that may cause actual results to differ materially from those expressed or implied. The company does not undertake any obligation to update these statements, and caution should be exercised when considering them in relation to future developments.

« Back to Page

• Air Liquide, Sasol secure 110 MW renewable energy deal for Secunda site