A&O Shearman advises Co-op on its GBP350m sustainability high yield bond issuance

The transaction forms part of Co-op’s long-term strategy and extends its debt maturity profile while maintaining headroom to support future growth. Under a sustainable bond framework, Co-op has linked the bond to projects that can deliver clear environmental or social benefits, including its spend with Fairtrade suppliers and on-site renewable energy generation.

Co-op is the largest consumer co-operative in the UK, owned by 7 million members, with an ambition to reach 10 million members by 2030. Co-op operates across food retail, funerals, insurance and legal services. With more than 2,300 food stores, 800 funeral homes and a wholesale business supplying around 8,000 outlets, Co-op employs 53,000 people and generates annual revenues of over GBP11 billion. Through its community-led programmes, Co-op creates long-term value for members and communities across the UK.

The A&O Shearman team was led by head of high yield John Kicken, together with senior associate Sampada Bannurmath and associates Majd Atalla and Mubashshir Sarshar.