TUI has announced the last repayment of the pandemic-era financial assistance it was allocated from Germany's Economic Stabilisation Fund (WSF).
"In order to be able to repay the state aid quickly, the Group had successfully carried out a capital increase as agreed. With the proceeds, the WSF's Silent Participation I in the nominal amount of 420 million euros was completely redeemed," the travel business announced.
The group, which includes an airline, had in 2022 repaid the €671 million Silent Participation II part of the WSF package.
" Together with the WSF, we had agreed on a roadmap to repay the state aid and implemented it consistently and swiftly," said chief executive Sebastian Ebel.
"Today we are repaying the remaining aid from the WSF including interest," Ebel added.
TUI is to also use proceeds from the capital increase with subscription rights of around $1.8bn to reimburse "a large part of the current drawdown of the bank credit facility in addition to the WSF aid", with the framework of the undrawn KfW credit line to be "significantly reduced" to €1.1bn.
" We are reducing our debt and interest costs and already expect a better net leverage ratio for the current financial year than in 2019. We have thus strengthened our balance sheet and gain more financial flexibility in implementing our strategy," said Mathias Kiep, chief financial officer.
TUI received €4.3bn worth of aid from three German "assistance packages" during the pandemic and lockdown period, which, the group said, "have been gradually returned, including interest, since the beginning of 2022 by means of several equity measures and through the return of the operating business".