Co-op secures new £350m lending agreement

The c-store specialist has struck the new lending deal with six banks: HSBC UK, Barclays, ING, Lloyds, NatWest and Rabobank. It said the new deal was a “key step on [The] Co-op’s journey to sustainable, profitable growth with much-improved borrowing rates directly tied to ambitious sustainability and social impact targets”.

The new lending facility is heavily linked to the Co-op’s ESG commitments of Net Zero by 2030, and to its goal of having 79% of suppliers adhering to its science based emissions targets and reducing food waste, amongst other initiatives.

Despite suffering the long-term effects of a cyber attack earlier this year, the Co-op’s most recent set of results in April reported a 35% increase in underlying operating profit and swung the retailer’s profit before tax back into the black.

The retailer’s focus on growing its membership base also showed signs of paying off, as its numbers swelled by 22% to 6.2 million during the year.

Co-op chief financial officer Rachel Izzard commented: “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 UK 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.”