Travel organization TUI is borrowing another 1.2 billion euros from the German government. An existing loan is increased by the German state bank by 1.05 billion euros. In addition, TUI is issuing a convertible bond of 150 million euros to the German stabilization fund WSF, the company reports Wednesday.
According to TUI, the money is needed to help the company through the winter. In that season, fewer trips are always booked. In addition, the company can use the money to deal with the uncertainty surrounding the travel restrictions.
TUI CEO Fritz Joussen emphasizes that the company is already doing better than at the start of the corona crisis. “People are going on vacation again,” he says. Still, he thinks the support is badly needed, because no one knows when a working vaccine will be developed.
It is not the first time that TUI has borrowed money from the German government. In March, the travel company already borrowed 1.8 billion euros because of the corona crisis. One of the conditions of the loan is that TUI may not pay a dividend during the term of the loan.