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TUI Group gets €1.8bn bridge loan from Germany

PHOTO: ©TUI AG TUI Group headquarters.jpg
TUI Group applied for the KfW loan to cushion the unprecedented effects of the COVID-19 pandemic
KfW Bank and TUI AG confirmed the travel giant's €1.8bn bridge loan from Germany's federal government.

COVID-19 state support program

The loan had been committed by Germany on March 27 as part of its COVID-19 state support program.

TUI said its revolving credit facility banking consortium supports the KfW loan and the addition of the €1.8bn into the travel giant's existing revolving credit line. 

Following the international travel restrictions, TUI applied for the KfW loan to cushion the unprecedented effects of the pandemic until normal business operations resume.

The group's cruise holdings include the TUI Cruises joint venture with Royal Caribbean Cruises Ltd.; Hapag-Lloyd Cruises, which had been scheduled to become part of that joint venture this summer; and Marella Cruises.

Year had started 'extremely strong'

TUI said the current financial year 2020 had started off with extremely strong bookings.

'We must bridge this unprecedented global situation. The German government has acted quickly to support jobs and companies during these exceptional times,' TUI CEO Fritz Joussen said. 'We are now preparing intensively for when our operations can resume after the coronavirus crisis and firmly believe people will continue to want to travel and explore other countries and cultures in the future.'