Online fashion and lifestyle destination in growth markets, Global Fashion Group (GFG), plans to accelerate its marketplace and platform services by focusing on technology development. For this, the group has placed seven year senior, unsecured bonds convertible as per their terms and conditions in an aggregate principal amount of €375 million.
As per report, these bonds also support the group’s ambition of becoming a €10 billion Net Merchandise Value (NMV) business in the next 7-9 years. They enhance the group’s capacity to accelerate fashion e-commerce adoption in key markets and fuel the next chapter of its growth, say Christoph Barchewitz and Patrick Schmidt, co-CEOs. GFG also plans to expand its adjacent categories, acquire new customers, and introduce innovations in delivery. This will facilitate the expansion of its Global Fashion Platform, strengthening its position in the digital fashion market.
The group will issue the convertible bonds at 100 per cent of their principal amount with a coupon of 1.25 per cent payable semi-annually. The initial conversion price was set at a premium of 42.5 per cent above the reference price of €12.60.