Żabka Group continues to reduce debt interest payments
The Żabka Group has announced the execution of a new agreement for credit facilities worth the equivalent of PLN 3.5 billion, maturing in 2031. The agreement provides for lower credit margins compared with the previous facilities.
The funds will be used mainly to refinance all liabilities under the existing senior credit facility, to finance or refinance working capital, and for general corporate purposes of Żabka Group companies.
Given its strong cash position, the Company has also decided to make a voluntary full repayment of a PLN 74.7 million credit facility contracted by subsidiary Zabka Automatic Logistics, and to reduce the Group’s senior debt by a total of EUR 82.5 million. By bringing down its exposure under EUR-denominated credit lines, the Company has at the same time limited its foreign exchange risk.
Combined with the lower credit margin, these steps will translate into reduced interest payments on debt in the periods ahead.
In addition, under the new senior credit facility agreement, the bond issuance cap for Group companies has been raised to PLN 2 billion, within existing debt limits.
Tomasz Suchański, CEO of Żabka Group, commented:
“At the time of our IPO, we committed to reducing our financing costs – and we are consistently delivering on that commitment. A major milestone in optimising our financing structure was the bond issue we completed a few months ago, which attracted very strong investor interest. The bonds were listed on the Catalyst debt market. Today’s syndicated credit facility agreements are another important step in strengthening our capital structure.”
Marta Wrochna-Łastowska, CFO of Żabka Group, added:
“We continue to focus on optimising our financing structure to diversify funding sources and reduce costs. After the IPO, we negotiated lower margins on our existing syndicated credit facilities and then partially repaid the borrowings through the issue of sustainability-linked bonds with an attractive margin of 150 basis points. In recent months, our priority has been refinancing the syndicated credit facility. The senior credit facility agreement signed today marks another key step towards bringing down our debt servicing costs and further strengthening our cash position. We are also very pleased with the strong interest in financing the Żabka Group, which demonstrates both the excellent cooperation with our lenders and the trust they have placed in us. We would like to take this opportunity to sincerely thank all our lenders for their trust, support and contribution to the continued growth of our business.”
Key details of the senior credit facility agreements:
- The agreement was signed between Żabka Polska sp. z o.o. as borrower and guarantor, Zabka Group and Zabka International S.à r.l. as guarantors, and ING Bank N.V., London Branch, acting as agent and security agent, together with a syndicate of financial institutions as lenders.
- The agreement provides for credit facilities totalling PLN 3,269 million and EUR 63 million, maturing in 2031.
- The loans will bear interest at floating rates, based on the WIBOR reference rate for PLN-denominated facilities and EURIBOR for EUR-denominated facilities, plus a fixed margin. The margin may be adjusted depending on changes in financial ratios and achievement of sustainability targets specified in the credit facility agreement.
- Disbursement of the funds is subject to standard conditions precedent customary for transactions of this type.
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