On 18 December 2019, the Warsaw Stock Exchange held a ceremony related to the début of bonds issued by LPP SA in the Catalyst Alternative Trading System. The funds raised in the amount of PLN 300 million will be used to finance the construction of the Company’s Distribution Centre in Brześć Kujawski. The issue of bonds covered 66 entities.
The Management Board of LPP SA decided to issue five-year bonds with a total nominal value of PLN 300 million in November. The issue price per bond was PLN 1 thousand. The offering was addressed to designated qualified investors and covered 66 entities.
– We have been present on the stock exchange since 2001 and for the last 18 years we have worked on building good relations with the market. The début of the bonds is the result of many years of work and a symbolic measure of success achieved in this area. The investors’ interest in the issue is a source of satisfaction for us and a proof that they place a lot of trust in the company. I am convinced that thanks to the acquired funds, we will be able to maintain dynamic growth and meet further business challenges, but also diversify the company’s sources of financing – comments Przemysław Lutkiewicz, Vice President of LPP for Finance.
LPP intends to use the PLN 300 million raised to build the Distribution Centre in Brześć Kujawski. The total cost of the investment is PLN 860 m – it will be financed from both bonds and additional investment loans. According to the plan, the symbolic groundbreaking in the investment will be held in H1 2020, and the first deliveries from the new centre are to start in 2022.
The distribution centre under construction will respond to the growing logistic needs of LPP resulting from the increase of the company’s sales volume. Currently, the Polish manufacturer’s offer is available on 39 markets – LPP brick-and-mortar stores operate in 25 countries and the online offer covers 30 markets.
LPP SA is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collection already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1700 stores with the total area of over 1 million sq.m. The online offer of the brands collections is available on 30 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 200 million pieces of clothing to three continents. LPP plays another important role as it employs over 25 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.