Mango seeking to raise €100m in debt issue

Mango is looking to raise €100 million ($112m) from debt investors in what would be the Spanish fashion firm’s first foray into the debt market.

The group led by Isak Andic has approached Spain’s Mercado Alternativo de Renta Fija (an alternative fixed-income securities market) for the placement, according to a report from El Confidencial. The move, the first in Mango’s history, is aimed at obtaining a new source of funding and reducing the company’s reliance on banks.

The €100 million worth of debt securities will be placed on the Spanish market, a local newspaper reported. Its proceeds are likely to be used, in part, to replace existing debt, currently sitting at €500 million ($561m). Mango’s debt pile, due to expire between 2019 and 2020, includes a €400 million syndicated loan and a €100 revolving credit facility.

Mango’s CEO and new CFO will have a meeting with Spain’s Mercado Alternativo de Renta Fija, and are working with banks, brokers and law firms to manage the transaction.

The capital injection will also go towards funding the brand’s new strategic plan, which involves the opening of more stores, increased investment in ecommerce and stock management infrastructure, and a stronger focus on key markets including China and the US.

In 2018, Mango is estimated to have made between €2.22 billion and €2.23 billion in global sales, representing €30 million to €40 million more than in 2017.

Mango seeking to raise €100m in debt issue

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