El Corte Inglés’ new refinancing agreement

What: El Corte Inglés reaches a new refinancing agreement with its banks with improved terms and conditions.

Why is it important: El Corte Inglés Group has reached an agreement to refinance up to EUR 2.6 bn of its bank debt. The agreement, which has been endorsed by some 20 Spanish and international banks, improves the retail group’s existing terms and conditions, locking in stable, lower-cost, and longer-term financing.

This agreement implies the full refinancing of the last agreement executed in February 2020, adding a new EUR 600 mn tranche which will be used to repay capital markets issues. The transaction has been structured into a long-term loan of EUR 919 mn and a credit facility of up to EUR 1.08 bn.

It also includes sustainability commitments in line with the Group’s corporate social responsibility strategies. Along with being equivalent to that corresponding to an investment-grade issuer, even though El Corte Inglés has yet to achieve an investment-grade rating so constituting a strong endorsement from the national and international banking community.