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El Corte Inglés Signs Debt Refinancing Deal With Banks

By Dayeeta Das
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El Corte Inglés Signs Debt Refinancing Deal With Banks

Spanish retailer El Corte Inglés Group has signed an agreement with 24 banks to refinance its debt for a maximum aggregate amount of up to €2 billion.

The funds obtained through this contract will be used to replace the syndicated loan of €2.05 billion secured by the retailer in January 2018.

As part of the agreement, the company's current bank financing will be reduced by €50 million.

Out of the total amount, €900 million corresponds to long-term loans, and €1.1 billion to a line of credit to meet working capital needs, the company said.

The 'Investment Grade' format agreement includes the development of the company's real estate business.

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It also added sustainability commitments in line with the corporate social responsibility strategies of the retailer.

Repurchase Plan

The company's board has also approved a repurchase plan for around 3% of the shares held by its directors.

The shares will be used in a new investment system designed to retain executives based on results, the company said.

Appointment

The retail giant has also announced the appointment of José Ramón de Hoces as the non-board secretary of its board of directors.

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Ramón de Hoces, a state attorney and member of the Pérez-Llorca law firm, has more than 20 years' worth of experience in his field.

© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.

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