El Corte Inglés signs financing agreement for €960 Million with ICO Backing

July 6, 2020

Cuatrecasas advised El Corte Inglés (“ECI”) on signing a five-year loan for €959.9 million. The financing agreement is backed by the Spanish State Finance Agency (“ICO”) in accordance with the credit lines created under Royal Decree-Law 8/2020, of March 17, with a 60% coverage of the principal.

Thanks to this transaction, the group transferred to this new agreement part of the amount of the syndicated revolving line of credit signed last April for an initial amount of €1.34 million (reduced to €406 million in the framework of this transaction) on whose negotiation Cuatrecasas also advised.

Nine national and international financial institutions (Bankia, BBVA, Caixabank, Crédit Agricole, Ibercaja, Kutxabank, Liberbank, Sabadell and Santander) signed this new agreement, which ensures liquidity for ECI for over one year without guarantees, to manage the financial needs arising from the COVID-19 crisis.

This financing transaction shows the confidence banks have in the company, which in recent years has reduced its debt significantly and improved its financial situation.

Cuatrecasas lawyers Miguel Cruz and Nuria Burillo advised on the transaction.

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