Lufthansa to Raise $2.5 Billion to Repay State Bailout Funds

German national airline to issue new shares at heavy discount
Carrier will miss target of paying off aid before election

Grounded Boeing Co. 747 aircraft, operated by Deutsche Lufthansa AG, at Frankfurt Airport in Frankfurt, Germany, on Wednesday, March 3, 2021. Lufthansa report 2020 earnings on March 4.Photographer: Alex Kraus/Bloomberg

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By William Wilkes and John Bowker

September 19, 2021 at 5:04 PM UTC

Updated on

September 20, 2021 at 8:21 AM UTC

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Deutsche Lufthansa AG plans to raise 2.14 billion euros ($2.5 billion) through a heavily discounted share sale as it strives to repay a German government coronavirus bailout.

The airline group will offer new shares at 3.58 euros apiece, less than half Friday’s closing price of 8.21 euros, and aims to return all of its 9 billion euros in state borrowings by the end of the year, according to a statement Sunday.