Air France-KLM has placed a €650 million senior unsecured notes under its Euro Medium Term Notes (EMTN) programme.
The maturity of the notes is five years and the notes carry a fixed annual coupon of 3.875%. Yield was fixed at 4.033%.
The company said the deal allows it to “take advantage of attractive market conditions and extend the average maturity of its debt”.
Proceeds will be used to redeem the first tranche of its €500 million 7.25% sustainability linked bonds in May 2026.
The deal attracted over 150 orders from institutional investors, with peak orderbook exceeding €3.5bn. The oversubscription and high demand allowed Air France-KLM to increase the deal's size from €500 million. Additionally, the company said this allowed to achieve a record low credit spread.
“The success of this transaction reflects Air France-KLM's strong credit quality and investor confidence in its business model, growth potential and financial structure,” the company said.
JP Morgan, Morgan Stanely and Societe Generale acted as global coordinators. Bank of China, Commerzbank, HSBC, La Banque Postale and Natixis acted as joint active bookrunners.