El Corte Inglés completes 500 million euro debt issuance

Madrid – El Corte Inglés, the Spanish department store group, has successfully completed a debt issuance totalling 500 million euros. The placement was executed through a bond issue with an interest rate of 3.5 percent and a maturity date in July 2033.

According to details provided by the Spanish company's management, the transaction received support from seven prominent placing entities, encompassing both Spanish and international financial institutions. These included Barclays, BBVA, BofA Securities, Caixa Bank, Citi, Goldman Sachs, and J.P. Morgan. An additional nine entities also participated in this financial endeavor: Banco Sabadell, BNP Paribas, Crédit Agricole, Deutsche Bank, Intesa SanPaolo, Kutxabank, Banco Santander, Société Générale, and Unicaja. Legal advisory services for the operation were provided by Linklaters and Allen&Overy Shearman.

Aimed at qualified investors, this marks the second debt issuance undertaken by the company, chaired by Marta Álvarez, since it received an “Investment Grade” credit rating from the debt rating agency S&P in June 2024. This enhanced credit status appears to have significantly contributed to the strong demand for the bonds, with subscriptions exceeding the available supply by approximately nine times, as emphasised by El Corte Inglés management. The 500 million euro bonds will yield an annual interest of 3.5 percent for their holders and have been issued with an eight-year maturity, set for July 2033.

Regarding the strategic purpose of this debt placement, El Corte Inglés stated that the issuance will enable the company to diversify its financing sources. The new funds, now added to its balance sheets and accounts, are designated for “general corporate needs,” without specific mention of any particular project or strategic initiative for their deployment. This 500 million euro bond issue follows a reduction in the company's net financial debt by 263 million euros during the 2024 financial year.