Belgian fashion group FNG announced at the start of December it would issue bonds in order to attract between 40 and 50 million euro, but it only managed to get about half.
Money needed for growth
Its timing may be the largest reason as to why FNG only managed to attract 25 million euro: "In hindsight, we could have timed this better", FNG Group's Dieter Penninckx said. "Bankers have told me that the market has shrunk considerably over the past 3 to 4 weeks. Considering that, it is a success we have managed to get 25 million euro."
FNG Group can use the funds well: it acquired two Dutch brands (Steps and Superstar) and purchasing organisation Coltex Retail Group in November, which has raised the group's turnover to 225 million euro. It has paid these acquisitions out of its own coffers and that is why FNG Group could have used the additional funds to keep growing.
The group mainly seeks international growth. To achieve that goal, it has opened purchase offices in Istanbul, New Delhi and Hong Kong.