The Otto Group is breaking new ground in financing. On Monday, the Hamburg trading and service group announced that it had issued a promissory note loan with a total volume of 382 million euros. According to a statement, it was the group’s “debut issue on the promissory note market”. “Following a number of smaller promissory note pilot projects in the past, the Otto Group has now placed a widely marketed promissory note transaction for the first time.”
The issue volume “significantly exceeded the initially targeted marketing volume of 200 million euros,” the group explained. “More than 73 investors, mainly savings banks, cooperative banks and foreign commercial banks” participated. The additional funds are now to be used “to finance general corporate purposes”.
CFO Petra Scharner-Wolff was pleased with the strong response: “Against the background of the current geopolitical and macroeconomic uncertainties and the volatile capital market environment, the great interest shown by investors is a strong vote of confidence in the Otto Group’s business model and a confirmation of our focused growth strategy,” explained them in a message.
Kai Havekost, the Group’s Vice President Corporate Finance, explained the background to the financing model: “With the debut issue of our promissory note loan, we are increasing the diversification of our debt instruments and are again broadening our investor base,” he explained. “In addition, the promissory note transaction proved to be stable and attractively priced in the currently very volatile capital market environment.”
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