Air France-KLM and Air France announce the successful renegotiation of their Sustainability Linked Revolving Credit Facility, resulting in an increase to €1.4 billion and extension of its maturity to July 2028

Rhea-AI Summary

Air France-KLM and Air France have successfully renegotiated their Sustainability Linked Revolving Credit Facility, increasing it to €1.4 billion and extending its maturity to July 2028. Key improvements include:

• Maturity extended to July 2028 with a one-year extension option
• Increase from €1,290m to €1,405m
• Expanded lenders' pool from 16 to 17 banks
• Optimized financial conditions

This undrawn facility enhances the Group's liquidity management. KLM's separate €1.0 billion ESG-linked facility remains unchanged. The total Group Revolving Credit Facilities now amount to €2.4 billion, up from €2.3 billion previously, demonstrating strong confidence in the Group's financial stability.

Paris, 18 July 2024

Air France-KLM and Air France announce the successful renegotiation of their Sustainability Linked Revolving Credit Facility, resulting in an increase to €1.4 billion and extension of its maturity to July 2028

• Financial conditions optimization following Air France-KLM’s credit rating
• Maturity extended to July 2028, associated with a one-year extension option
• Increase of the facility from €1,290m to €1,405m
• Increase in the RCF lenders’ pool from 16 to 17 relationship banks, among which 12 Tier 1 banks, and 5 Tier 2 banks.

In March 2023 Air France-KLM and Air France as combined borrowers signed a €1.2billion Sustainability-Linked RCF. This facility had an initial 2026 maturity, included two one-year extension options, at lenders’ discretion, and provided for a €100 million accordion increase option at the lenders’ discretion. The first extension option and accordion option were activated in April 2024.

The amended agreement provides for an extension of the maturity to July 2028 with a one-year extension option at lenders’ discretion, as well as an increase in the size of the facility to €1.4billion with optimized financial conditions. This facility is currently undrawn. Through this transaction, Air France-KLM and Air France are extending the average maturity of available resources, in line with the Group's policy of careful liquidity management. The facility has been successfully syndicated and oversubscribed, by a pool of widely diversified international banks, which demonstrates the confidence in the Group's solidity.
This transaction was coordinated by Crédit Agricole Corporate and Investment Bank (CACIB) and Natixis CIB, jointly acting as Coordinators and Natixis CIB acting as Facility Agent.

KLM’s €1.0billion ESG-linked revolving credit facility signed in March 2023 with an initial 2027 maturity, and two one-year extension options of which one option was exercised in April 2024, remains unchanged, with a 2028 maturity.

The total amount of the Group Revolving Credit Facilities is therefore increased to €2.4billion, from €2.3 billion previously.

Investor Relations                                                        

Michiel Klinkers                        Marouane Mami                                                            

michiel.klinkers@airfranceklm.com        marouane.mami@airfranceklm.com

Website: www.airfranceklm.com

Attachment

• Press release - AFKL AF RCF

FAQ

What is the new size of Air France-KLM's Sustainability Linked Revolving Credit Facility?

Air France-KLM's Sustainability Linked Revolving Credit Facility has been increased to €1.4 billion from the previous €1,290 million.

When is the new maturity date for Air France-KLM's renegotiated credit facility?

The maturity of Air France-KLM's renegotiated credit facility has been extended to July 2028, with an additional one-year extension option at lenders' discretion.

How many banks are now in Air France-KLM's lenders' pool for this facility?

The lenders' pool for Air France-KLM's credit facility has increased from 16 to 17 relationship banks, including 12 Tier 1 banks and 5 Tier 2 banks.

What is the total amount of Air France-KLM Group's Revolving Credit Facilities after this renegotiation?

After the renegotiation, the total amount of Air France-KLM Group's Revolving Credit Facilities has increased to €2.4 billion from the previous €2.3 billion.

Is Air France-KLM's newly renegotiated credit facility currently drawn?

No, the newly renegotiated €1.4 billion Sustainability Linked Revolving Credit Facility is currently undrawn.