CCC Group successfully raises new, larger and cost-effective financing
The CCC Group has signed a five-year PLN 1.8 billion syndicated loan agreement. The new agreement significantly optimises the structure of bank financing for the CCC Business Unit (comprising the CCC and HalfPrice companies), lowers the cost of the financing and unlocks the potential for further expansion. The new financing is a major achievement for the entire organisation, following consistent efforts to strengthen the business’s profitability.
The CCC Group has signed a PLN 1.8 billion loan agreement with a bank syndicate. The financing will be used to refinance the bank debt of the CCC Business Unit (comprising the CCC and HalfPrice companies) under more favourable terms than before, as well as to support the further development of both business lines.
The CCC Group plans to use the new financing, among other purposes, to early redeem the 1/2018 series bonds. The new agreement also provides for an additional pool of funds, in the amount of PLN 360 million, for a potential repurchase of bonds acquired by the Polish Development Fund.
“The new financing represents a huge success for us, bolstering the Group with stability and expanding avenues for growth. Its structure is now better tailored to our business’s unique requirements as, among other things, it increases the share of reverse factoring, which is necessary for the most efficient, cost-neutral financing of purchases at the Group. In addition, the more flexible capex provisions of the new agreement free up opportunities for expansion of our proven and profitable formats,” said Dariusz Miłek, President of the CCC Group Management Board. “The new financing supersedes the previous arrangement, which was secured during the challenging market conditions of the COVID-19 pandemic, under highly stringent terms for the Company. The acquisition of the financing was primarily made possible by consistent and substantial improvements in profitability over the past few quarters.”
The purpose of the refinancing is to expand the availability of financing to a higher limit than previously available. Consequently, the banks’ exposure increased by 50% (an additional PLN 600 million), notably by nearly tripling the limits for reverse factoring, which was a key priority for the Company.
“We are satisfied with the level of new financing, and its commercial terms are highly favourable and suitable for market leaders. This will enable us to fully capitalise on growth opportunities and ensure a brighter future for the CCC Group. Sustainable improvement of the profitability of each business line remains our priority. We will continue to develop our unique business model that combines full-price and off-price strategies,” added Dariusz Miłek, President of the Management Board of the CCC Group.
The terms of the new agreement are tied to the achievement of sustainability (ESG) goals. For four consecutive years, the CCC Group has claimed the title of the world’s most sustainable footwear company according to World Finance Magazine, and is the only Polish name within the industry to have secured the prestigious MSCI ESG rating of AA. The granting of the financing confirms the Company’s past commitment and above-average performance in this area.
The Group’s next priority will be to further increase factoring limits, thereby expanding the use of the retail industry’s standard tool for financing purchases. As a result, the Group anticipates ongoing optimisation of financing costs.
