With overwhelming majority was approved by the extraordinary general meeting of shareholders of JUMBO the publication of Common Bond Loan of maximum amount of 145 millions of Euro with a duration of 7 years with particularly favourable terms that are justified by the powerful and permanently improved fundamental numbers of Group.
The General Meeting of shareholders was informed by the management for the prospects of profitability of Group. The management considers that the positive attitude not only of the Banks but also of the Investment Houses for the development plans of Jumbo Group, leads to particularly low cost financing and allows the increase of the total amount of loan from 125 millions to 145 millions of Euro.
The General Meeting after discussion finally confered power of attorney on the management to handle the standard details for the publication of the bond.
The bond will be used for the refinancing of older lending obligations and for operating capital in order the Group to correspond to its rapid developmental rythms.
Especially, the aforementioned amount of the Loan will be issued in four Issue Series. Organizer and coordinator of the Common Bond Loan is the French Bank BNP Paribas who already has accepted to meet the term of the complete absorption of indisposed bonds. It can be divided into 1.300 nominal bonds of Issue Series A, of utmost total nominal value of € 65.000.000. It will be divided into 400 utmost limit nominal bonds of Issue Series B, of utmost total nominal value of € 20.000.000 and into 800 utmost limit nominal bonds of Issue Series C, of utmost total nominal value of € 40.000.000. It can be divided into 400 utmost limit nominal bonds of Issue Series D, of utmost total nominal value of € 20.000.000.
In particular, concerning the bonds of Series A and Series B, the Company will have the possibility to purchase and re-introduce them to the bond holders. Every bond will have the nominal value of € 50.000 and the issue price at par. Likely the participants into the mentioned bond will be the Credit Institutions that entrust the management and the prospects of Jumbo Group .
The management of Jumbo informed the general meeting that at the quarter January - March 2007 the sales (with the help of the early Easter period) were increased at + 40% so the total sales of the 9months (June 2006-March 2007) increased about + 26% compared with the previous corresponding period. The impressive rythm of growth that the Group presents has as a result the revision of the budget from the management for the financial year 2006-2007, which is over the initial forecasts. Particularly, the management foresees that the growth of the current financial year will be about + 21.5%, the same growth rate with the previous financial year. In addition, the management of Group informed the general meeting that the first metropolitan store in the area of Piraeus started its operations and enjoyed the expected acceptance from the consumers of the wider region. Additionally, in line with the reconstruction plans of network the management terminated the operation of 3 smaller stores. Consequently the current total number of Group’s stores in Greece and Cyprus is 39.
Regarding to the expansion of Jumbo Group in the Balkans, according to the plans, the first JUMBO store in Sofia of Bulgaria will be ready in about 6 months, October 2007, in order to be completely operationable during December 2007. Finally, the Jumbo Group continues to invest hugely in the real estate market of Bulgaria and Romania and soon it will announce the establishment of a second store in Bulgaria