The parent group of AB Vassilopoulos announced that it would issue a 5-year unsecured bond loan of 70 million euros, with an annual fixed interest rate of 6.16%.
According to the announcement published on Tuesday in the General Commercial Registry, the contracted bondholders in the loan, which will be issued within six months, are the following: Lion Retail Holding S.a.r.l., which is the parent of AB and will cover bonds up to 17.5 million euros, and Ahold Delhaize Finance Company N.V., Curacao (acting through its branch in Geneva), which is affiliated with AB and indirectly controlled by Koninklijke Ahold Delhaize N.V., which will cover bonds up to the amount of 52.5 million euros.
It is worth pointing out that over the years the participation of AB Vassilopoulos in the Ahold Delhaize group’s results has been important, showing very positive performances from 2016 onwards. The past two years, however, a slowdown has been recorded as the chain struggles to regain its footing amid a period of intense operational and consumer challenges.
This year’s performance
AB Vassilopoulos’ revenue growth is seen at 1%, compared with a growth rate of 8% in the organized food retail market. This year’s share loss of AB Vassilopoulos, combined with low growth recorded in 2022, justifies the decision for capital support, through which it will be able to implement its plans in a more targeted way.
