Co-op secures £350m in fresh funding spurred by ‘social values’

Co-op has secured a new £350m lending agreement with six major banks, in what it said reflects “strong market confidence” in the retailer.

The co-operative has agreed a five-year deal with HSBC, Barclays, ING, Lloyds, NatWest and Rabobank linked to its sustainability and social impact targets.

It said the deal is “a key step on Co-op’s journey to sustainable, profitable growth” and reflects “strong market confidence in the group’s continued resilience and performance”.

In April the retailer reported a surge in full-year pre-tax profits to £161m despite group sales remaining flat at £11.3bn during the period, bolstered by a 22% increase in membership numbers to 6.2 million.

Co-op chief financial officer Rachel Izzard said: “This funding arrangement is a powerful endorsement of strength – the renewed financial strength of our Co-op, the strength of our mutual model and the strength of the shared voice of our members.

“I’m proud to be building on our existing strong relationships with our banking partners, as well as partnering with new lenders, such as HSBC and a fellow co-operative in Rabobank for the first time.

“By weaving our social value commitments into our funding strategies, we’re able to invest in our Co-op while holding ourselves accountable to our members and their priorities. A heartfelt thank you to all our partner banks for making this possible.”

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