Rewe Places Promissory Note Loans Of €1 Billion
German retailer Rewe has announced that it placed promissory note loans of €1 billion, with the aim of increasing its strategic financial reserves in a 'generally favourable financial market'.
The retail group says that due to high investor demand, the originally-planned amount of €500 million could be doubled.
The placement was carried out by around 250 investors, mainly from savings banks, cooperatives banks, national and international banking groups.
Klaus Wirbel, head of finance at Rewe, said that the "clear oversubscription underlines investor confidence in the creditworthiness and business model of the Rewe group."
Rewe says that this investment will be used to develop its store network, and help with the group's digital transformation.
"Against the background of our excellent economic situation, the promissory note loan gives us the opportunity to secure the current interest rate environment in the long term," said Christian Mielsch, CFO of the Rewe Group.
"On the other hand, it increases the room for manoeuvre in order to further expand our market position as one of the leading retailers of food and tourism."
Rewe Group operates 15,000 stores in 20 European countries, with 10,000 Rewe, Billa, Merkur and Penny stores in Germany.
The group posted sales over over €54 billion in 2016.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.