UK-based beauty and fashion e-tail giant Asos has raised £500m in convertible bonds to fund its global expansion plans.
Due in 2026, the capital was raised following a record-breaking six month trading period for the retailer, in which it saw gross profits up 19% on 2020’s books and UK sales growing 39% to £800.4m compared with the previous year.
The bonds will provide Asos with “additional flexibility to continue to invest behind its global growth strategy,” the group said in a statement.
Meanwhile, the cash injection will also be used to refinance the business following Asos’ acquisition of four of bust Arcadia’s high street brands, including its crown jewel Topshop, which the group bought out for £265m back in February.
After sealing its first-ever acquisition, Asos has been focused on making changes across the business that will support its global growth strategy.
In its interim results for the six months to 28 February, published earlier this month, Asos’ noted the successful implementation of its Truly Global Retail (TGR) system to replace its technology infrastructure with retail capabilities that will support its global growth ambitions.
This included an overhaul of Asos' internal operating systems with new tools and processes to improve the way it trades for global consumers.
A new fulfilment centre in Lichfield, UK, that will house six million units is set to be mobilised in 2023, while an Atlanta-based warehouse in the US is expected to be up and running in the same period, increasing stock capacity by 50%.
Speaking about its first half performance Asos’ CEO, Nick Beighton, said: “We are delighted with our exceptional first-half performance and proud of the work our teams have put in to achieve this.
“These record results, which include robust growth in sales, customer number and profitability, demonstrate the significant progress we have made against all of our strategic priorities and the strength of our execution capability.”
