4/14/2020, 9:09 PM (Source: TeleTrader)
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Chart for: ADIDAS AG NA O.N.

Adidas to receive €3B in loans

Adidas AG announced on Tuesday that the German government gave the green light for the company to receive €3 billion in loans to fight the negative effects of the novel coronavirus on its business.

The sportswear corporation said in a press release that will be provided with a €2.4 billion loan from KfW, Germany's state-owned development bank. The remaining €600 million will be received from a consortium consisting of UniCredit, Bank of America, Citibank, Deutsche Bank, HSBC, Mizuho Bank and Standard Chartered Bank. The agreement with the government entails that Adidas is required to halt dividend payments and stock repurchase programs, and that the company's top brass and board forfeit bonuses.

"The further development of the coronavirus outbreak and its impact on the company's business cannot be predicted at this point in time. As a result, Adidas is still not able to provide an outlook for the full year 2020 that includes this impact," the corporation stated.

Baha Breaking News (BBN) / MS