A woman passes an office of TUI in Brussels, Belgium, May 13, 2020. (Xinhua/Zheng Huansong)

The additional COVID-19 loan would strengthen the company's position and would "provide sufficient liquidity in this volatile market environment to cover TUI's seasonal swing through winter 2020/21 and thereafter."

BERLIN, Aug. 12 (Xinhua) -- TUI, one of the world's largest tourism companies, would receive an additional governmental loan of 1.2 billion euros (1.4 billion U.S. dollars) to cope with the effects of the COVID-19 crisis, the Germany-based tourism group announced on Wednesday.

The utilization of the loan was subject to a convertible bond of 150 million euros issued by TUI to the German government's Economic Stabilization Fund (WSF), which aims to stabilize the economy in the wake of the coronavirus pandemic, according to the company.

Furthermore, creditors of a bond maturing in October 2021 would need to refrain from limiting TUI's indebtedness. TUI noted that both conditions and "other formal requirements" would need to be fulfilled by the end of September.

A pedestrian walks past an office of TUI in Brussels, Belgium, May 13, 2020. (Xinhua/Zheng Huansong)

The additional COVID-19 loan would strengthen the company's position and would "provide sufficient liquidity in this volatile market environment to cover TUI's seasonal swing through winter 2020/21 and thereafter."

The emergency aid by the German government would also help TUI "in the case of any further long-term travel restrictions and disruptions related to COVID-19," the German tourism group stressed.

Including the additional loan, TUI would hold cash and available facilities of 2.4 billion euros, according to the German company.

At the beginning of April, TUI was granted a loan of 1.8 billion euros by the state-owned German development bank KfW.

Easing of travel restrictions in Europe already enabled TUI to "benefit from a partial restart" of its summer schedule with an "immediate positive effect on working capital, as customers are committing for the current and future holiday seasons," the German company noted. ■