One of the conditions for approving the loan is the suspension of dividend payments for the entire term of the loan.
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.
20 APRIL 2020, Germany
Inditex Group reports sales and profit growth
Victoria's Secret expands with Amazon
Exploring the enigmatic world of Japanese fashion: 10 top brands that define style
Authentic Brands buys Hunter's intellectual property
Armani introduces organic cotton production in Italy
Wegmans shuts down one of its largest stores
Adidas gears up for the release of Yeezy merchandise 
Skims unveils spectacular summer pop-up store in New York City 
Starbucks makes its debut in Rome with new coffee shop opening 
Century 21 reopens flagship department store in Manhattan 
Birchbox assets acquired by Retention Brands in strategic move