HANOVER (dpa-AFX) - The world's largest travel group Tui has repaid financial aid from the German Economic Stabilization Fund (WSF) from the Corona crisis as planned. Thanks to the proceeds from its latest capital increase, Tui transferred 750 million euros to the WSF in a final tranche, according to its own statements on Friday. The sum also includes interest and compensation for the fact that the state fund waived the right to exchange the aid for Tui shares. In total, the Group has thus paid the WSF around 381 million euros for the state aid granted in the crisis since 2020, according to its own figures.

The WSF and the state-owned development bank KfW had saved Tui from going under following the collapse in business as a result of the Corona pandemic with capital injections, bonds and credit lines totaling around 4.3 billion euros. WSF accounted for 1.2 billion of this. Tui had already repaid part of the sum last year. This was now followed by the final part of the WSF aid, consisting of Silent Participation I, a warrant bond and the associated interest and compensation payments. For the time being, however, Tui intends to retain the KfW credit line in a reduced amount of 1.1 billion euros.

A few days ago, the travel group raised around EUR 1.8 billion in fresh money from shareholders with the help of a capital increase. According to Tui, the proceeds will be used to repay bank loans as well as state aid.

From WSF's perspective, the group has now put its pandemic-related problems behind it. "This marks a successful end to the stabilization of Tui AG by the Economic Stabilization Fund," said Eva Grunwald, managing director of the German government's financial agency.

The executive board led by Tui CEO Sebastian Ebel believes the group is in stronger shape to further expand its vacation business, thanks to recent steps and increased demand for travel. "We are thus reducing our debt and interest costs and already expect a better net gearing ratio for the current financial year than in 2019," said Chief Financial Officer Mathias Kiep./stw/mis/stk