TUI, the world’s biggest holiday company which has taken on huge state loans to help it survive the pandemic, said on Wednesday it continued to consider options for raising new finance but had not made any decisions yet.

Bloomberg reported earlier that TUI was working with advisers on a possible $1.2 billion capital increase, sending the company’s London-listed shares down by as much as 3.9%.

Last year, the pandemic stopped holidays and Hanover-based TUI has received multiple bailouts from the German government over the past 15 months. It will need to start repayments on some of its $4.8 billion of loans in 2022.

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“We are continuously looking at all possible scenarios with regard to the pandemic and refinancing,” said a TUI spokesperson, adding this was in line with its previous statements.

“Additional financing measures have not yet been decided. No banks have been mandated.”

TUI chief executive Fritz Joussen has repeatedly said the company will consider asset sales and a capital increase to help pay down debt. He has also said a travel recovery will boost its finances.

In the group’s German business, which alongside Britain is its biggest customer market, bookings are soaring, reaching higher rates than before the pandemic.

But its UK business remains depressed as strict quarantine rules deter Britons from travelling and TUI has cancelled most holidays from the UK to big destinations like Spain and Greece until July 4.

The company could wait until after the summer season to assess how much it needs to raise, the Bloomberg report added.

TUI shares were down 1.2% to 393 pence at 1310 GMT. The group raised $680 million in a capital increase in January as part of its third bailout and in May agreed to sell a 49% stake in a hotel joint venture for up to $800 million.

(Reporting by Ilona Wissenbach. Writing by Madeline Chambers and Sarah Young in London Editing by Riham Alkousaa and Mark Potter)

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Photo Credit: TUI has cancelled most holidays from the UK to big destinations like Spain and Greece until July 4. Christian Wyrwa / TUI