7 May 2021

Successful bond placement: 300 million euros issued for TUI Cruises

TUI Cruises has issued a bond with a volume of 300 million euros. The 6.5% bond was more than five times oversubscribed. The company is thus gaining access to the capital market for the first time as an expanded source of financing for recapitalisation.
Sebastian Ebel, CFO, TUI Group: “The successful placement of the TUI Cruises bond today and the TUI Group convertible bond a few weeks ago, which was also in high demand, are important signals for future financing, for investments and for the future of the companies - both for TUI AG and for TUI Cruises. The bonds, which were oversubscribed several times, show: Investors are convinced of TUI's strategy, the prospects for the cruise industry and tourism, and the return to success and growth after the pandemic. Encouragingly, cruise bookings for the second half of the year and for 2022 and 2023 are developing well.”
Peter Krüger, TUI AG Executive Board member responsible for joint ventures, strategy and M&A: "Up to now, expansion has been financed from the company's cash flow and via bank loans. With the successful placement of the bond, the company has financed itself via the capital market for the first time since its foundation. TUI Cruises is attractive to investors as a brand and product and strengthens the value of the company's investment for us as co-owners of the cruise company. With this first time launch TUI Cruises has accessed capital markets allowing to diversify its financing sources in the future allowing for more flexible (re-)financings."
TUI Cruises, founded in 2007, is a highly successful joint venture between TUI Group and Royal Caribbean Group. The company started in 2009 with Mein Schiff 1 and currently operates seven ships in the Mein Schiff fleet as well as four luxury and expedition ships under the Hapag-Lloyd Cruises brand.

About TUI Cruises

TUI Cruises GmbH is one of the leading cruise operators in German-speaking countries. The joint venture between TUI AG and the US cruise company Royal Caribbean Cruises Ltd. employs around 750 people in Hamburg and Berlin. A fleet of seven ships sails for the Mein Schiff brand. Since the end of 2020, the Hapag-Lloyd Cruises brand has also been part of TUI Cruises GmbH with a fleet of currently five ships. The Mein Schiff fleet offers contemporary holidays at sea in the premium segment (Mein Schiff 1 to Mein Schiff 6 and Mein Schiff Herz / bed capacity: 17,800). Hapag-Lloyd Cruises is one of the leading cruise brands in the German-speaking world in the luxury and expedition segment with a 130-year history. TUI Cruises operates one of the most modern and environmentally and climate-friendly fleets in the world. In the course of sustainable growth, three more new ships are planned until 2026.