Company

1 April 2021

REWE Group refinances €750 million

First sustainability-linked credit line

The REWE Group is refinancing its €1 billion syndicated loan from 2020, having arranged a creditline aligned with the ISS ESG agency’s ESG rating for the first time in the cooperative group’s history. This ESG/sustainable finance instrument allows the REWE Group to extend its sustainability strategy into the financial sector for the first time. ISS ESG assigned to REWE Group a rating of C+, corresponding to the ‘Prime’ level. The company’s transparency level is rated as ‘very high’. The ISS ESG report states that “sustainable products and services are at the heart of REWE Group’s sustainability strategy, and the company recognizes its responsibility to promote sustainable consumption.”

The €750 million backup line has been signed with ten banks. It has an 18-month maturity with the option to extend for an additional twelve months. UniCredit Bank AG served as the documentation agent, DZ Bank AG as the facility agent and Raiffeisen Bank International AG as the sustainability agent.

“We are proud of this development for two reasons. This is the first time that we have linked a credit line to sustainability factors, including working standards and conditions, the minimization of environmental impact over product life cycles, climate protection, socially and environmentally friendly products and the transparency of customer information. Additionally, we have achieved Prime status in the ESG rating in our first attempt, making us one of the best companies in our sector. This success is an endorsement of our long-standing commitment to sustainability,” says Dr. Christian Mielsch, CFO of REWE Group. He expressed his thanks to the banking consortium for demonstrating a maximum of confidence in REWE Group’s financial strength and strategy. “The refinancing of REWE Group’s backup line follows last year’s increase of liquidity reserves to 2.5 billion euros, enabling the Group to brace itself for future challenges and provide long-term stability and security to employees, customers and business partners alike,” concludes Dr. Mielsch.

About REWE Group

The cooperatively organised REWE Group is one of the leading trade and tourism groups in Germany and Europe. In 2019, the company generated a total external turnover of around 63 billion euros. Founded in 1927, the REWE Group has more than 360,000 employees and operates in 23 European countries.

 

Sales lines include REWE, REWE CENTER, BILLA and ADEG supermarkets and consumer stores, the discounter PENNY, BIPA health and beauty store and the toom Baumarkt DIY stores. In addition, the Group incorporates the REWE To Go convenience stores and e-commerce activities such as the REWE delivery service and Zooroyal. The Lekkerland Group is the REWE Group business unit that is responsible for wholesales to convenience stores. Travel and tourism under the umbrella of DER Touristik Group includes the tour operators ITS, Jahn Reisen, Dertour, Meier’s Weltreisen, ADAC Reisen, Kuoni, Helvetic Tours, Apollo and Exim Tours, and more than 2,400 travel agencies (including DER Reisebüro, DERPART and partners), the hotel chains ITI Hotels, Club Calimera, COOEE, PrimaSol and Playitas Resort, and the direct tour operator, clevertours.com.

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Contact
Andreas Krämer
Spokesperson REWE Group