Tui extends €4.7bn credit repayments by two years

The Tui group has extended the repayments on €4.7 billion worth of state-backed credit by two years to summer 2024.

Tui confirmed a consortium of 19 banks and German state-owned investment bank KfW have extended the group’s revolving credit facilities to allow more time “to implement planned refinancing steps” in view of continuing Covid restrictions.

The group insisted its goal remains the “rapid repayment of government loans as soon as more holiday destinations can be travelled to in a stable manner”.

In a statement, Tui said: “Pent-up demand and interest in travel remain at high levels in Europe and Tui’s international markets.”

It reported summer business “has got off to a good start” but remains “focused on a few destinations such as Greece, Spain and Cyprus, domestic tourism and Tui Cruises”.

The two-year credit extension will come at a cost of 4.5% per year or approximately an additional €423 million.

Tui reported it had €2.9 billion available in liquidity at the start of this week.

Chief executive Fritz Joussen said: “We are now financed in the medium term until summer 2024. This creates stability and flexibility as long as restrictions still affect the business and markets.

“The 2021 summer season has started well, demand for holidays and travel remains high in all of Tui’s European markets. Vaccinations continue to be the key to more freedom for all and for travel.”

He added: “The banks support our strategy, our path of transformation and see Tui’s strengths after the crisis.”

The group’s credit facilities total €4.8 billion but €105 million of this is with a UK bank and can’t be extended beyond summer 2022.

The facilities comprise €1.75 billion from private banks and €1.8 billion from the KfW in a first ‘stabilisation package’, €1.05 billion in a second KfW package and €0.2 billion from the KfW and private banks in a third.

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