REWE Group Signs New Syndicated Loan Agreement Of €2bn
Germany’s REWE Group has announced that it has signed a loan agreement of €2 billion with a consortium of 18 national and international banks, with a term of five years and two renewal options of one year each.
The loan agreement also includes an increase in the lending volume of up to €500 million.
This self-arranged financing replaces the previous €1.5 billion line of credit, which will expire in September of 2020.
Backbone Of Financing
Dr. Christian Mielsch, REWE Group CFO, said, "The syndicated loan remains the backbone of our corporate financing, and with the reissue of the loan, we have expanded and secured our solid liquidity reserve for the coming years of growth."
"As with the promissory note transaction in February 2018, we were again able to take advantage of the overall favourable financial market environment and even improve our good credit conditions.”
Optimising Funding Resources
The revised documentation forms the basis for exploring the possible use of further forms of funding to optimise the future financing mix of the company.
REWE Group, founded in 1927, is one of the leading trade and tourism groups in Germany and Europe. In 2017, the company posted total external sales of around €58 billion. It employs around 345,000 people and operates approximately 15,300 stores in 22 European countries.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.