Air France-KLM today announced the full repayment of its bank loan guaranteed by the French State (“PGE”), making a final step towards the full repayment of States support liquidity measures

Air France-KLM today announced the fullrepayment of its bank loan guaranteed by the French State(“PGE”), making a final step towards thefull repaymentof Statessupport liquidity measures.

• Air France-KLM has fully repaid the remaining €2.5 billion from its initial
  €4 billion Bank loan guaranteed by the French State, granted during the Covid-19 crisis.
• The Group's solid cash position combined with the €1 billion proceeds of the Sustainability-Linked Bond issued in January 2023, has enabled to accelerate and close the repayment in full of the outstanding “PGE”.
• This full repayment will contribute to smoothing the Group's debt profile, reduce financial costs and limit residual exposure to floating rates.
  
  

In 2022, Air France-KLM recorded a strong rebound of its revenues, an improved operating result and a positive net income resulting in a strong cash position of €10.6 billion by the end of 2022. On the back of this robust operational performance, the Group successfully issued in January 2023 an inaugural Sustainability-Linked Bond for a total aggregate amount of €1.0 billion.

Given this context, Air France-KLM has now reached an agreement with the French State and the syndicate of nine banks participating in the “PGE” to proceed with the full repayment of the outstanding €2.5 billion, as announced during the FY 2022 results presentation on February 17^th, 2023. To do so, the Group used the €1.0 billion proceeds of the Sustainability-Linked Bond and €1.5 billion of its available cash. This full repayment will contribute to smoothing the Group's debt profile, reduce financial costs and limit residual exposure to floating rates, and marks a final step towards the full repayment of the current French State liquidity support measures.

Investor Relations                                                        

Michiel Klinkers                                Marouane Mami                                

[email protected]                [email protected]

Website: www.airfranceklm.com

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• 2023 03 15 PR_AFKLM_PGE_full_redemption