Advising banks on TUI’s EUR 500m sustainability-linked senior notes

Due to high investor demand, the original offer size was increased by EUR 200 million. The proceeds will be used to repay existing liabilities, reduce the KfW credit line and for expenses associated with the offering.

The coupon of the notes is linked to the achievement of a specific sustainability target. TUI group’s Airlines CO2e-emissions per Revenue Passenger Kilometer are to be reduced by at least 11% by the end of the financial year ending on September 30, 2026 (compared to financial year ended September 30, 2019). Failure to achieve the sustainability target will increase the annual coupon of the notes by 25 basis points for the remaining term.

The Allen & Overy team was led by partner Marc Plepelits (US Corporate Finance) and counsel Nadine Kämper (Capital Markets) and comprised furthermore senior associate Martin Schmidt as well as associates Sonali Sharma (both US Corporate Finance), Vincent Buchta and Patrick Reuter (both Capital Markets, all Frankfurt).

The team also included partners Dr Knut Sauer (Capital Markets), Wolfgang Melzer (Banking & Finance), John Coburn (Banking & Finance), Dr Heike Weber (Tax), senior associates Dr Tobias Wintermantel and Karen Zöttl (both Banking & Finance), associate Dr Manuel Köchel (Tax, all Frankfurt) and other colleagues from the firm’s offices in Brussels and London.