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ASOS launches £500 million fundraising scheme for global expansion

Tom Shearsmith
09 April 2021

ASOS has launched a £500 million fundraising scheme through unsecured guaranteed convertible bonds to provide “additional flexibility” for potential global expansion.

Launched by ASOS's wholly owned subsidiary Cornwall (Jersey) Limited, the company is offering £500 million of senior unsecured guaranteed convertible bonds, due in 2026.

The net proceeds of the bonds will not only provide ASOS with additional flexibility to continue to invest behind its global growth strategy, but also help with refinancing the Arcadia brands it acquired in February 2021.

The bonds will be issued at par and are expected to carry a coupon of between 0.50% and 1.00% per annum payable semi-annually in arrear in equal instalments on 16 April and 16 October in each year, with the first interest payment date being 16 October 2021.

The initial conversion price is expected to be set at a premium between 45% and 50% above the reference share price which will be equal to the placement price of a Share in the Concurrent Delta Placement.

News of ASOS’s fundraising plan comes after the publication of its half-year results yesterday, which saw Group revenue rise by 24% year on year, to £1.97 billion. Pre-tax profits also rose 253%, reaching £106.4 million.

The company said: “We believe the shift to online retail as a result of the pandemic and the accelerating consolidation of offline retail has increased consumer confidence in shopping online.

“In the coming months we expect a portion of consumer demand will move back to stores as restrictions are eased throughout our markets, but we expect online penetration to remain structurally higher than pre COVID-19 levels.”

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