Mutual retail & services business The Co-operative Group has secured a £950 million refinancing deal, it has been announced today.
With a senior debt facility capacity set to increase to £1 billion, the new package aims to allow the retail group, which has an annual turnover in excess of £13 billion, to continue its focus on investment.
Supported by a syndicate of banks led by Barclays, the group which operates more than 4,800 retail trading outlets, is thrilled to have refinanced its core banking facilities for the next five years, according to Treasurer Roger Morgan.
“Given the challenging economic backdrop it was extremely important to work closely with a trusted partner bank to achieve our objectives,” he said.
“Barclays have continuously demonstrated the value of a long standing relationship and their team once again excelled by professionally leading this transaction to a very successful outcome.”
Earlier this month, Barclays’ CEO Bob Diamond resigned from his post after it emerged that the banking giant had manipulated inter-bank lending rates and high street retailer Marks & Spencer also came under fire for its partnership with HSBC.
Jim Quantrill, the Relationship Director leading the deal for Barclays, said that the group, which includes grocer The Co-operative Food, was an attractive prospect for the bank.
“Barclays has a long standing and very close relationship with the Group and this over-subscribed financing shows the attraction of the Co-operative brand for funders and a high regard for the business and management team,” he commented.