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Global Fashion Group raises 375 million euros to fund NMV growth target

By Prachi Singh

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Report

Global Fashion Group S.A. (GFG) has announced placing of seven-year senior, unsecured bonds in an aggregate principal amount of 375 million euros. The company said that the proceeds from this financing will be invested in capitalising on this market opportunity and executing the clear investment strategy that supports GFG’s ambitious NMV target.

Commenting on the transaction, Christoph Barchewitz and Patrick Schmidt, Co-CEOs of GFG, said in a statement: “This additional capital supports our ambition of becoming a 10 billion euros net merchandise value business in the next 7-9 years. Alongside investment in core growth areas, we also intend to accelerate the execution of our strategy, in particular the expansion of our marketplace and platform service capabilities.”

The company added that GFG will focus on key growth levers including further development of the technology to accelerate its marketplace and platform services, expansion into adjacent categories, customer acquisition, innovation in delivery and returns, as well as other opportunities.

GFG informs that the Convertible Bonds will be issued at 100 percent of their principal amount with a coupon of 1.25 percent payable semi-annually. The initial conversion price was set at a premium of 42.5 percent above the reference price of 12.60 euros.

Image: Global Fashion Group

Global Fashion Group