The German government has approved the loan from KfW, which will be used to increase the operator’s existing credit line to €1.75 billion.
TUI must waive dividend payments for the duration of the bridge loan, giving it access to financial resources and credit lines of €3.1 billion.
“The commitment of the KfW bridge loan is an important first step for Tui to successfully bridge the current exceptional situation,” said Fritz Joussen, Chief Executive of the TUI Group.
“Our thanks go to the German Federal Government, the German parliament, the Government of Lower Saxony and KfW. They have acted quickly and in a solution-oriented manner in the interest of our customers, employees and the company.”
TUI suspended its tourism operations in mid-March until further notice.