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Pepco Group NVPepco retailer signs loan agreements worth EUR 770 million with 10 banks
Listed retailer Pepco Group has signed loan agreements worth EUR 770 million with 10 banks, the company said in a market filing.
The new financing package includes two term loans and a revolving credit facility: a 3-year term loan of EUR 235 million maturing on November 5, 2028 with an initial margin of 1.55 percent above EURIBOR; a 5-year term loan of EUR 235 million maturing on November 5, 2030 with an initial margin of 1.70 percent above EURIBOR; and a 5-year multi-currency revolving credit facility worth EUR 300 million, with two non-binding one-year extension options and an initial margin of 1.35 percent above EURIBOR per annum.
The new term loans will be used to refinance the group’s existing debt, including a term loan of EUR 250 million maturing in April 2026, a revolving credit facility of EUR 390 million maturing in April 2027, and the remaining senior secured bonds of EUR 200 million with a 7.25 percent coupon maturing in July 2028. The revolving credit facility will serve general corporate purposes and act as a liquidity reserve for the Group.
The loans were arranged by Citibank, ING Bank N.V. and J.P. Morgan Securities plc as coordinators.
The banking consortium includes Bookrunners and Mandated Lead Arrangers: Citi Handlowy, listed lender ING BSK, J.P. Morgan Securities plc, listed lender Bank Pekao, Poland's largest lender by assets PKO BP, listed lender Santander BP and UniCredit S.p.A.; Mandated Lead Arrangers: Barclays Bank PLC, KBC Bank NV, London branch, and Raiffeisen Bank International AG.
Pepco Group also confirmed that its subsidiary PEU (FIN) plc successfully completed the subscription process for series 1 bonds issued as part of a PLN 2 billion (EUR 469.8 mln) bond issue programme.
The bonds were allocated and issued on November 6, 2025 and are expected to be registered with the national securities depository KDPW on Friday. The proceeds of PLN 600 million (EUR 141 mln) were converted into a fixed interest rate in EUR using currency interest rate swaps (CCIRS), as a result of which the Group will pay a fixed interest rate of 4.50 percent in EUR throughout the term of the bonds.
"The completion of our dual-track refinancing is a very good result for the group, which will strengthen our capital structure and increase our financial flexibility. The success of this operation confirms the confidence in Pepco's business model and our growth strategy, and also shows the continued strong support from both our existing partner banks and new Polish debt investors. The total refinancing significantly reduces the Group's financing costs, while maintaining favourable terms and contractual provisions," said Willem Eelman, CFO, quoted in the statement.
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