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.
It also added sustainability commitments in line with the corporate social responsibility strategies of the retailer.
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.
The retail giant has also announced the appointment of José Ramón de Hoces as the non-board secretary of its board of directors.
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.