- Travel company TUI said it had extended an existing funding agreement with the German government's KfW development bank by €1.05bn.

Drawing the amount was subject to the issuance of a €150m convertible bond and a waiver by bondholders of senior notes due in October 2021.

TUI said the combined package of €1.2bn would provide sufficient liquidity to cover its seasonal swing through the 2020-21 winter and thereafter, and in the case of any further long-term travel disruptions related to Covid-19.

The company said that the stabilisation package would boost its cash and available facilities to €2.4bn.

An initial €1.8bn tranche with KfW was issued in April and, like the new tranche, was structured as an increase to TUI's existing revolving credit facility.

The execution of amendments with the company's banking consortium for the new tranche was almost finalised, TUI said.

At 1:10pm: [LON:TUI] Tui AG share price was -5p at 377.6p

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