Air France-KLM announces the successful issuance of a 650 million euros note under its EMTN Program

Core Viewpoint - Air France-KLM successfully issued €650 million in senior unsecured notes, reflecting strong investor confidence and favorable market conditions [1][2]. Group 1: Transaction Details - The notes have a maturity of 5 years and carry a fixed annual coupon of 3.875%, with a yield fixed at 4.033% [1]. - The transaction attracted over 150 orders from institutional investors, with a peak orderbook exceeding €3.5 billion, leading to the increase in size from €500 million to €650 million [2]. - This issuance allowed the Group to achieve the lowest credit spread in its history, indicating strong credit quality and investor confidence [2]. Group 2: Use of Proceeds and Ratings - Proceeds from the issuance will be used for general corporate purposes and to redeem the first tranche of Sustainability Linked Bonds amounting to €500 million, which has a coupon of 7.25% due in May 2026 [3]. - The Group's long-term debt is rated BB+ by Standard & Poor's and BBB- by Fitch Ratings [3]. Group 3: Underwriters - J.P. Morgan, Morgan Stanley, and Société Générale acted as Global Coordinators for the transaction [3]. - Bank of China, Commerzbank, HSBC, La Banque Postale, and Natixis served as Joint Active Bookrunners [3].