Co-op agrees £350 million lending deal with six major banks
Co-op has announced a new £350 million lending agreement with six major banks, including HSBC UK, Barclays, ING, Lloyds, NatWest and fellow co-operative, Rabobank.
The deal follows the group posting a “solid” set of annual results in April for the year to 4 January, including a 35% increase in underlying operating profit to £131 million.
Co-op said the success was driven by a renewed focus on member-ownership which led to member numbers growing by 22% to 6.2 million across the year.
The group’s improved position has meant that its credit rating was upgraded by Standard & Poor’s in late 2024. It also successfully renewed and extended its backstop undrawn revolving credit facility by five years.
Never Miss a Retail Update!Rachel Izzard, chief financial officer at Co-op, said: “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.”
Co-op is aiming to have opened over 120 new stores across retail and franchise by the end of 2025.
