A new £1.4 billion bank credit facility has been agreed by Tui Travel.

The arrangement, which matures in June 2018, was oversubscribed, demonstrating continued strong backing from relationship banks, Europe’s largest travel group said.

“The new facility was agreed on competitive terms and substantially extends the company’s debt maturity profile, providing the company with valuable flexibility in respect of its other debt facilities and upcoming maturities,” Tui said.

Chief financial officer Will Waggott said: “We are pleased to announce the signing of this new credit facility which improves the strength and flexibility within our balance sheet.

“We appreciate the continued strong support from our relationship banks.”