German retailer REWE Group has announced the signing of a syndicated credit line totalling €1 billion, together with a consortium of banks – Commerzbank, DZ Bank, ING and SEB.
The retailer made the move to 'ensure its financial flexibility and independence' in the wake of the COVID-19 pandemic, it said in a statement.
Liquidity Reserves
"This line supplements an existing credit line of €2 billion, which runs until 2024 as an undrawn reserve line," commented Christian Mielsch, chief financial officer at REWE Group.“REWE Group can use the new credit scope flexibly within the next 15 months.
"Thanks to this measure, our company currently has a total liquidity reserve of more than €2.5 billion, and is thus equipped for all possible financial challenges that may arise from the crisis."
Mielsch also thanked the banking consortium for their support in securing the credit line, saying the company was "very pleased with the high level of support" it received from the core banks, which "expressed their confidence in the financial strength and business strategy of the REWE Group".
REWE Group is present in 22 European countries, and generated total sales of more than €61 billion last year.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
