The German Adidas Group, the second-largest manufacturer and marketer of sportswear and footwear on the world market, has announced a €3 billion syndicated loan to mitigate the financial impact on the business in this situation. The loan was approved by the German government and the German state development bank KfW, the company’s press office said.
The business of the sports giant was under pressure amidst the closure of stores around the world, restrictions on the movement of people in the most affected countries, as well as the cancellation of the Olympic Games, European Football Championship, and other events. The loan includes a EUR 2.4 billion commitment to KfW and a EUR 600 million loan to a consortium that includes UniCredit, Bank of America, Citibank, Deutsche Bank, HSBC, Mizuho Bank and Standard Chartered Bank, Reuters reports.
One of the conditions for approving the loan is the suspension of dividends for the entire term of the loan. Adidas plans to report for the first quarter and make projections for revenue and profit this year, April 27, 2020.
