The German sportswear brand is seeking €1 billion from its debt sale on Monday, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. It’s the firm’s first dive in to the region’s public debt market since 2020 and before that it hadn’t issued bonds since 2014.
“We do expect still significant concessions to be paid by Adidas,” in Monday’s debt sale, said Shanawaz Bhimji, a fixed-income analyst at ABN Amro Bank NV, referring to the premium that borrowers pay over their existing debt.as the Yeezy product. Stemming the damage from ending the lucrative line will be a key challenge for newly appointed Chief Executive Officer Bjorn Gulden when he takes over in January.
The debt sale is a boon for Europe’s market for new issuance after a year of underwhelming activity, particularly from non-financial companies. Adidas is joined in the market on Monday by Telefonica Europe BV and Thermo Fisher Scientific Inc, even with issuers having to effectively pay up to compensate investors for the economic uncertainty ahead and impact that may have on future earnings.