LPP unveils new development financing strategy. The group is adjusting its capital raising structure to the scale of its business plans

LPP has signed an agreement with a group of Polish and international banks for a total amount equivalent to approximately PLN 13.5 bn. The new debt structure is a response to the significant acceleration of the sales network’s expansion, increased financing for suppliers and investments in logistics infrastructure resulting from the adopted development strategy. Thanks to the consortium agreement, the company gains not only long-term stability, but also the opportunity to operate on a larger scale with significantly improved conditions for raising capital. This is a breakthrough in the LPP’s financing model and one of the largest transactions of its kind in the region.

LPP’s rapid growth until 2027, which assumes an intensive plan of new Sinsay store openings, over PLN 2 bn in total logistics expenditure and nearly double the demand for supplier financing, poses new operational and financial challenges for the company. The decision to build a more flexible and long-term debt structure worth approximately PLN 13.5 bn based on cooperation with a banking consortium is aimed at strengthening the Group’s stability and capital security and adjusting the financing model to the scale and development ambitions of the company.

– The transformation of the existing financing structure into a consortium model marks the beginning of a new chapter in the history of LPP, in which we combine dynamic growth with financial security. The acquired debt structure not only addresses current capital needs but also provides a stable foundation for further years of intensive expansion. The strategic support of banks that share our vision confirms the validity of our chosen development strategy. Thanks to this cooperation, we are gaining fuel for further expansion while maintaining clearly defined priorities – profitability, stability, and responsible development – comments Marcin Bójko, Vice-President of the Management Board of LPP.

LPP has signed an agreement with a consortium of 21 Polish and international banks, covering extended supplier financing, a revolving credit facility and an investment loan. The new financing structure organises the company’s liabilities over a 3-5 year period, ensuring its long-term stability, greater flexibility and the ability to operate on a much larger scale. LPP gains access to significantly higher credit limits while reducing the cost of capital and extending the financing period.

– A broad and comprehensive process involving dozens of leading European and global financial institutions allowed the transaction, despite its size placing it among the largest in the CEE region in recent years, to be oversubscribed by over 50%. As a result, the debt structure achieved provides the LPP Group with favourable covenants, no collateral and improved financing costs. In market practice, similar covenant-lite-loans structures are mainly seen in financing for the largest international groups with Investment Grade ratings. The developed structure also includes the largest supplier financing programme in the region, which stabilises the company’s working capital management and at the same time supports the liquidity needs of suppliers – summarise Mateusz Gromek, President, and Paweł Kusiak, Partner at Final Milestone Corporate Finance, the exclusive financial advisor to the LPP Group.

The new debt structure adopted by LPP and the terms of the syndicated agreement provide scope for future increases in limits within the financing structure. This is to ensure that the Gdańsk-based company can flexibly adjust its financing to the pace of the Group’s development.

– The strong oversubscription of the offers is clear evidence of the financial market’s confidence in our strategy and confirmation that LPP is perceived as a reliable and solid partner with a strong market position. We are pleased that, within the developed structure, our financial partners have room to grow alongside the LPP Group – emphasises Marcin Bójko, Vice-President of the Management Board of LPP.

Additional information, including a list of banks and the terms and conditions of the agreement, is available in the company’s current report dated 20.11.2025.

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LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central Europe. For 30 years, it has been successfully designing and selling the collections and accessories in Poland and abroad. LPP manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay, whose offer is available today in stationary and online stores in 44 markets worldwide. The company has a chain of nearly 3,200 stores with the total area of over 2.6 million m2 and distributes the products to 3 continents every year. LPP also plays an important role as it provides employment to over 54 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.