Lufthansa Group has signed up for its first revolving credit facility, for EUR2 billion euros (USD2.19 billion), with “a broad syndicate of international relationship banks” as a means of bolstering its liquidity, the company said in a statement.

The unsecured loan facility replaces existing undrawn bilateral credit lines of about EUR700 million (USD770 million), which means that it further increases the liquidity available to the Lufthansa (LH, Frankfurt International) parent by around EUR1.3 billion (USD1.42 billion), the April 8 statement said.

The facility, which comes without financial covenants and has the role of “serving as undrawn back-up liquidity,” will be available for three years with two one-year extension options.

“The signing of our first syndicated revolving credit facility further strengthens our liquidity reserve and increases the efficiency of our balance sheet in securing our liquidity target of EUR6-8 billion [USD6.55-8.74 billion] and demonstrates strong, longstanding relationships with our core banking group,” Remco Steenbergen, Lufthansa’s chief financial officer, said in the release.

HSBC Continental Europe, Landesbank Baden-Württemberg, and UniCredit Bank acted as coordinating bookrunners and mandated lead arrangers in securing the agreement, the carrier said.