International law firm Addleshaw Goddard has advised the Co-op Group on a new £350m lending agreement with six major banks: HSBC UK, Barclays, ING, Lloyds, NatWest and fellow co-operative, Netherlands-based Rabobank.

The retailer says it is taking advantage of its improved credit rating with the deal, which reflects strong market confidence in its resilience and performance, and follows a series of financial successes. In April, the Group reported a 35% increase in underlying operating profit, and returning “back to the black” for profit before tax for the first time since 2020. These achievements were powered by a renewed focus on member-ownership, it adds, where member numbers grew by 22% to to 6.2 million across the year.

The Group also renewed and extended its backstop undrawn revolving credit facility by five years, and says the new agreement is a continuation of its “strengthening financial picture”.

The Group added: “This represents a well-funded position with strong partners to 2030. The deal is a key step on Co-op’s journey to sustainable, profitable growth with much-improved borrowing rates directly tied to ambitious sustainability and social impact targets.”

The Addleshaw Goddard Finance team who worked on this transaction included Richard Oman, Nicholas Parkin and Aaron Tones. 

Simon Nuttall, Director of Tax Treasury & Insurance at the Co-op, said:

Richard Oman, Banking and Finance Partner who led the AG team, said: 

“This new funding arrangement, which is linked to the Co-op's ESG commitments, speaks volumes for the values of the Group, the strength of its financial performance and its relationship with lenders. We have worked closely with the Co-op over many years and were delighted to be asked to support it in achieving its goals and those of its members.”