La Lorraine Bakery Group aims to raise at least 40 million euro through the issuing of bonds, in order to finance further growth in Central Europe.
40 to 75 million euro
The Belgium-based, family-run business wants to alleviate its debts and spur growth in Central Europa, where it already has a firm basis. The group is active in the milling and bakery sector and reached a turnover of 513 million euro last year It has eleven production sites in Belgium, Poland, the Czech Republic and Romania, exporting to more than 25 countries, usually through its own retail network.
The company, Enterprise of the Year 2012 in Belgium, is now giving investors a chance to buy bonds up until 13 December. The bonds are for 7 years and have a gross interest of 4 %, leading to financial insiders to claim it is a “wise decision to get cheap money for the company”, but possibly “not that interesting for investors”, due to the “low interest rate for a longer period of time” and its “low cash character”.
La Lorraine’s retail pilar, bread chain Panos, became Best Belgian retail chain in the category “Food to Go” last week.
(Translated by Gary Peeters)