TUI whispers €300 million five-year sustainability-linked notes in high 6% area

By Paul A. Harris

Portland, Ore., Feb. 27 – Initial guidance has TUI AG’s €300 million offering of five-year sustainability-linked notes (B1/B+) coming to yield in the high-6% area, according to market sources.

The deal is being marketed by means of a roadshow set to run through Wednesday.

The notes, which are to be issued under the company’s sustainability-linked finance framework, target a reduction of its airline CO2-emissions per revenue passenger kilometer by at least 11% by the end of the financial year ending on Sept. 30, 2026, compared to the financial year that ended on Sept. 30, 2019.

Citigroup and Deutsche Bank are the joint physical bookrunners. Credit Agricole, ING, LBW and Natixis are joint bookrunners.

The Hanover, Germany-based leisure, travel and tourism company plans to use the proceeds to repay liabilities and reduce the KfW credit line.

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