The Executive Board of Lufthansa Group decided today to suspend future coupon payments for the hybrid bond issued in 2015 (maturing in 2075) for the duration of the government stabilization measures, which means until the repayment of the drawn silent participations and the sale of the shareholding in Deutsche Lufthansa AG by the Economic Stabilisation Fund (ESF) in Germany. The decision is based on the view of the EU Commission that such coupon payments constituted a violation of the state aid regulations of the Temporary Framework for state aid to support the economy in view of the outbreak of COVID-19 (EU Temporary Framework) and the conditions of the state aid approval of the stabilization measures in favor of Lufthansa.

In accordance with the terms and conditions of the 2015 hybrid bond, the suspension of the coupon payments does not result in the forfeiture of the entitlement to the coupon payments. The Lufthansa Group intends to make up for the deferred coupon payments as soon as possible once the stabilization by the ESF has been completed.

Lufthansa Group has not issued any other corporate bonds or financial instruments with options to suspend interest or coupon payments.

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Media Relations
Lufthansa Group
Germany
lufthansa-group@dlh.de
+49 69 696 2999