Foreign

Adidas receives 2.4-billion-euro loan from German development bank

The sporting goods manufacturer Adidas has received a 2.4-billion-euro (2.63-billion-dollar) loan from the state development bank KfW to deal with the economic fallout from the coronavirus pandemic.

KfW made a loan commitment for the amount, plus commitments from a bank consortium of 600 million euros, the group announced on Tuesday.

“The grave impact of the worldwide spread of the coronavirus on its business has led Adidas to take further steps in order to secure its financial flexibility,” it said in a statement.

Adidas added that its executives would not receive short and long-term bonuses for 2020, “which total 65 per cent of target annual compensation.”

Read also: New Zealand ‘over the peak’ of coronavirus, prime minister says

The Herzogenaurach, Germany-based company said it “cannot be predicted at this point in time” what the impact of the coronavirus pandemic would be on its business, and that it could not currently provide a financial outlook for 2020. (dpa)

About the author

Ihesiulo Grace

Leave a Comment