Global Fashion Group raises €375 mn to support growth ambitions

Global Fashion Group (GFG), the online fashion and lifestyle destination in growth markets, has placed seven year senior, unsecured bonds convertible as per their terms and conditions in an aggregate principal amount of €375 million. GFG will focus on key growth levers including development of technology to accelerate its marketplace and platform services. “This additional capital supports our ambition of becoming a €10 billion Net Merchandise Value (NMV) business in the next 7-9 years. Alongside investment in core growth areas, we also intend to accelerate the execution of our strategy, in particular the expansion of our marketplace and platform service capabilities. With this transaction, we have even greater capacity to accelerate fashion e-commerce adoption in our markets and to fuel the next chapter of our growth,” Christoph Barchewitz and Patrick Schmidt, co-CEOs of GFG, said in a press release. GFG today is only at the beginning of reaching its market potential, with 16.3 million active customers that represent only 1.6 per cent of the population in its markets. The proceeds from this financing will be invested in capitalising on this market opportunity and executing the clear investment strategy that supports GFG’s ambitious NMV target.  Further, GFG will also focus on expansion into adjacent categories, customer acquisition, innovation in delivery and returns, as well as other opportunities. These initiatives facilitate the expansion of GFG’s Global Fashion Platform, further embedding its position in the digital fashion ecosystem and strengthening its proposition to customers and brands alike.  The convertible bonds will be issued 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.

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