Daily Management Review

€3B loan approved for Adidas amid COVID-19 pandemic


The German Adidas AG, one of the world's largest manufacturers of sportswear and accessories, received approval for a loan of €3 billion to support the business amid the coronavirus pandemic, the company said in a message.

Adidas notes that it has received approval from the German government for a loan of €3 billion, of which €2.4 billion will come from the state development bank KfW, and another €600 million - from a consortium of banks. The consortium includes UniCredit, Bank of America, Citibank, Deutsche Bank, HSBC, Mizuho Bank and Standard Chartered Bank.

The conditions for obtaining a loan include suspension of payment of dividends during the term of the loan, or until July 2021. The Executive Board also decided to abandon the buyback of shares and receive short-term and long-term bonuses in 2020, which account for 65% of the target annual remuneration.

In March, the European Commission (EC) approved a scheme to support the German economy through the German state bank KfW due to problems from the spread of the new coronavirus.

The World Health Organization on March 11 announced an outbreak of a new coronavirus infection COVID-19 with a pandemic. According to the latest WHO data, more than 1.8 million cases of infection have been recorded in the world, over 113 thousand people have died.

source: reuters.om