Jumbo Raises €200m In First 'Schuldschein' Transaction
Dutch retailer Jumbo Supermarkten has announced that it has raised €200 million on the Schuldschein market.
Schuldschein is a private loan taken out directly under German law with investors, mainly from the banking, insurance and pension sectors.
The amount raised was twice as much as the supermarket had targeted, due to the high level of interest from investors, the retailer added.
International interest in the 'Jumbo Schuldschein' was approximately four times greater than the intended financing amount.
It is the first non-bank loan for the retailer and also its first step in the international capital market.
The loan agreement, with five and seven year terms, involves investors from the Benelux (approximately 25%), other European countries (approximately 55%) and Asia (approximately 20%).
'Ambitious Growth Plans'
Jumbo CFO Ton van Veen, said, “Due to our ambitious growth plans and the desire to reduce our exposure to Dutch banks, we have started to orient ourselves on the international investor market.
“The interest from investors worldwide proved overwhelming, causing the order book to be oversubscribed about four times. We are delighted with this interest and with the placement of this Schuldschein we are strengthening our financial basis for further growth.”
Recently, the company announced a store reorganisation strategy and pledged that 'no jobs will disappear' as part of the restructuring process. However, the company added that a number of roles will change, while other positions will be discontinued, with existing staff on a permanent contract given priority when applying for a new position.