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News:

May 12, 2020

Ceconomy closes syndicated loan agreement

After the Federal Government approved the participation of the country’s state-owned KfW bank in a Euro 1.7 billion syndicated revolving credit line for Ceconomy AG at the end of April, the loan agreement has now been concluded following a corresponding commitment by the banking consortium. According to a press release, the agreement comprises a commitment from KfW in the amount of Euro 1,360 million and loan commitments of Euro 340 million from the banking consortium.


The consortium includes Bank of America, BNP Paribas, CaixaBank, Commerzbank, Crédit Mutuel Alliance Fédérale, Deutsche Bank, DZ BANK, ING Bank, J.P. Morgan Securities, Landesbank Baden-Württemberg, Landesbank Hessen - Thüringen Girozentrale, Raiffeisen Bank International, Santander CIB, Société Générale and UniCredit Bank. The syndicated loan is intended to supplement Ceconomy's existing credit lines in the amount of Euro 980 million.

"Given the worldwide spread of the COVID-19 pandemic and the associated uncertainty, we have secured access to extensive back-up lines for possibly longer lock-downs and a possible second wave," commented Ceconomy CEO Bernhard Düttmann. “We are very happy about the high level of support from the German government, KfW and our partner banks. Our thanks go to everyone involved for the constructive approach and timely decisions in these unpredictable times. ”

The term of the new credit line was set until December 2021 with a one-year extension option at KfW's discretion. As reported on April 30, 2020, the agreement includes the condition that Ceconomy suspends dividend payments for the duration of the credit facility. In addition, the Management Board has decided to waive its own short-term performance-related remuneration for the current financial year. In addition, the short-term bonus for the second management level is to be reduced for the current financial year.
 

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