Ocado launches £500m bond to fund geographic expansion
Written by Peter Walker
Ocado is launching a £500 million bond issue to help fund the expansion of its robotic automated warehouses in other countries.
The online grocer told potential investors that its unsecured convertible bonds, which are due in 2025, will pay out a coupon rate of between 0.75 per cent and 1.25 per cent every year.
A statement also noted that its retail revenue growth for the 13 weeks to 1 December was set to rise by between 10 and 11 per cent.
Last week, Ocado confirmed a £7 billion partnership with Japanese food retailer Aeon. It also revealed plans to open its first ‘mini’ fulfilment centre in Bristol by the end of 2020 or early 2021.
The company said it plans to spend the funds raised from the bond issue to “fund capital expenditure in relation to Ocado Solutions”, the arm which sells automated warehouse technology to third party retailers.