KPMG Law advises Deutscher Reisesicherungsfonds GmbH on syndicated financing of EUR 750 million

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) advised Deutscher Reisesicherungsfonds GmbH (DRSF) on financing law for a syndicated financing. With a credit line of 750 million euros, the DRSF has been bridging the period since November 1, 2021 until the final build-up of the target capital as a travel security fund.

With the entry into force of the Travel Security Fund Act (RSG) on July 1, 2021, the protection of package travelers in the event of the insolvency of the travel provider was newly regulated. The tour operator has to ensure the refund of the travel price and a contractually agreed return transport including interim accommodation. Since November 1, 2021, a tour operator with an annual turnover of at least 10 million euros can only fulfill this obligation through a hedging contract with a travel security fund authorized under the RSG.

At the end of August 2021, the Federal Ministry of Justice and Consumer Protection commissioned the DRSF, which was established under the RSG, to implement the legal requirements. The DRSF took over as the central travel security fund on November 1, 2021. A target capital of EUR 750 million has been identified as the fund’s assets, to be built up by the end of October 2027. In order to have sufficient financial resources at the start of operations and before reaching the target capital in the event of possible tour operator insolvencies, DRSF entered into a syndicated loan agreement with a revolving line of credit in this amount. KPMG Law provided comprehensive legal support to DRSF in structuring the financing, finalizing the financing agreement documentation, and coordinating with the banks and the guarantor. A team led by Miriam Bouazza, Head of Legal Financial Services, Frankfurt, was responsible for this.

KPMG Law and KPMG AG Wirtschaftsprüfungsgesellschaft have already assisted DRSF in its application to operate as a travel insurance fund and in implementing the fund’s contract and claims platform, investment infrastructure and related control environment.

Consultant DRSF:

KPMG Law Rechtsanwaltsgesellschaft mbH:

Miriam Bouazza

(Partner, Lead Partner, Banking and Capital Markets Law, Frankfurt),

Florian Wagner

, Isabelle Knoché, (both Senior Manager, Legal Financial Services, Frankfurt),

Melanie Riechert

(Senior Associate, Legal Corporate Services, Hanover),

Tanaz Vakili

(Senior Associate, Legal Financial Services, Hamburg)