French-KLM airline Air France-KLM said it had raised about 2.26 billion euros through its latest capital increase, with total demand for new shares approaching 2.6 billion euros.
Proceeds from the rights issue will be mainly used to repay an aid package to the French government and reduce related financial costs and other debts, the company said, confirming previously announced plans.
The airline launched a capital increase in May - a widely anticipated move - as part of its efforts to win shareholder support to rise above the pandemic and invest in recovering air travel.
The issue was led by a huge investment in logistics firm CMA CGM, which used its 9% stake in the airline as it bet on growing global demand for in-flight cargo amid supply chain challenges.
However, the value of the stakes held by the French and Dutch governments remained unchanged after the offering, while a portion of China Eastern's stake was diluted to 4.7% from 9.6% before the capital increase.
"Our successful capital increase is a strong testament to the confidence our existing shareholders and new investors have inAir France-KLM's prospects," said the company's boss, Ben Smith.
