KfW and TUI have signed the state aid bridging loan for €1.8 billion. The loan had been committed by the German Federal Government on March 27, as part of the COVID-19 state support program.
TUI's current Revolving Credit Facility “RCF” banking consortium supports the KfW loan and the addition of the €1.8 billion into TUI's existing RCF credit line.
Following the international travel restrictions, TUI decided to apply for the KfW loan in order to cushion the unprecedented effects of the pandemic until normal business operations can be resumed. TUI like others had to temporarily suspend its tour operator, flight, hotel and cruise programs.