Air France-KLM has hit the upper target of its convertible bonds private placement, putting it on track to raise €550 million ($714 million) for fleet and debt financing.

The Franco-Dutch company initially detailed plans to raise €480 million from the offering, with scope to increase by 15% to approximately €550 million.

However, in a statement it said: “Following the success of the issue, Air France-KLM has decided to exercise the extension clause in order to increase the initial issue size to approximately €550 million.”

The bond’s nominal value has been set at €10.30 representing 32.5% premium over Air France-KLM's reference share price.