By Kyle Morris

TUI AG said Tuesday that it will launch a capital increase to repay 671 million euros ($700 million) it received from the German government under the Economic Stabilization Fund.

The London-listed Germany-based travel group said it will also use the proceeds to reduce the outstanding KfW credit lines by EUR336 million to EUR2.1 billion.

TUI said it intends to issue up to 162.3 million shares, or around 10% of the company's share capital. The number of new shares and the price will be determined by an accelerated bookbuild which will start immediately.

The new shares will be exclusively offered to institutional investors, it said.

Write to Kyle Morris at kyle.morris@dowjones.com

(END) Dow Jones Newswires

May 17, 2022 12:20 ET (16:20 GMT)

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