Air France-KLM has announced that it has placed €500m in hybrid bonds with a fixed annual coupon of 5.75% (yield of 5.875%) until the first reset date. The bonds will be listed on Euronext Paris.
This issue, which was welcomed by the market with an order book of more than €1.75bn, enables the airline to simplify its balance sheet and optimize its financing costs while maintaining financial leeway.
Air France-KLM specifies that these hybrid, perpetual and subordinated bonds will be rated 'BB' by Fitch and 'B+' by S&P, and will be recognized as equity at 50% by both rating agencies.
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Air France-KLM: E500m hybrid bond placement
Published on 05/16/2025 at 01:12
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