Co-op announces £350m lending deal with string of major banks
Convenience store chain Co-op has announced that it has secured a new £350m lending agreement with six major banks.
The group has secured an agreement with HSBC, Barclays, ING, Lloyds, NatWest and fellow co-operative, Rabobank, in a move Co-op said reflected “strong market confidence” in its performance.
The announcement comes after April saw Co-op report a 35 per cent lift in underlying operating profit. The firm said its member numbers had also grown 22 per cent to 6.2 million across the year.
Rachel Izzard, chief financial officer at Co-op, said: "This funding arrangement is a powerful endorsement of strength - the renewed financial strength of our Co-op, the strength of our mutual model and the strength of the shared voice of our members.
“I'm proud to be building on our existing strong relationships with our banking partners, as well as partnering with new lenders, such as HSBC and a fellow co-operative in Rabobank for the first time.
“By weaving our social value commitments into our funding strategies, we're able to invest in our Co-op while holding ourselves accountable to our members and their priorities. A heartfelt thank you to all our partner banks for making this possible."
Co-op said it would use the funding to cover all upcoming bond facilities as they fall due, describing the deal as a “key step” on its journey to “sustainable, profitable growth”.
It added that its improved borrowing rates were directly tied to its sustainability and social impact targets, which include achieving Net Zero by 2030, reducing approximately 650 tonnes of food waste annually across its operations, and promoting diversity by aligning management representation of women and ethnic minorities with ONS UK population data.
Renée Marais of Rabobank, said: "We are delighted to support the Co-operative with this new facility. It is a particular privilege, given our shared status, focus on Food & Agriculture and aligned values, to join the banking group during the UN's International Year of Co-operatives."
Francesca Mosca, head of corporate sector coverage UK at ING, said: "As a core lender to the Co-op group, ING is proud to support their latest £350m sustainability-linked financing.”
The latest announcement comes after Co-op earlier this week said it was offering its members £10 off a minimum £40 shop as a “thank you” gesture following a major cyber attack that disrupted payments and left shelves bare.