Germany's Lufthansa raises $1.7 billion in corporate bond sale

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FILE PHOTO: FILE PHOTO: Lufthansa planes are seen parked on the tarmac of Frankfurt Airport

(Reuters) - Germany's Lufthansa said on Tuesday it raised 1.5 billion euros ($1.73 billion) in a corporate bond sale, its third bond sale this year, in order to boost the company's liquidity and refinance debt.

Earlier this year, the airline company, which was hit by a pandemic-related tourism crunch, raised a total of about 2.6 billion euros in February and July by issuing bonds.

"The long-term funds, which were again raised at attractive terms, will be used to further strengthen the Lufthansa Group's liquidity and refinance existing debt," finance chief Remco Steenbergen said in a statement.

The company said it issued bonds of two years and five-and-a-half years. This placement is one of several successful capital market transactions that will contribute to the full repayment of the government stabilization measures in Germany, it added.

The tranche with a term until November 2023 bears interest of 1.625% per year and the tranche with a term until May 2027 has an interest rate of 2.875%, according to the statement.

(Reporting by Aakriti Bhalla in Bengaluru; Editing by Matthew Lewis)

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