Rocket Internet to spend EUR100 million for debt repurchase


Rocket Internet, the parent company of Jumia said it will repurchase  252 million euros (nominal) convertible bonds.

The debt notes were issued by 550 million euros, for 220 million euros (investment sum).

The company disclosed that at present, there are still € 298 million (nominal) of the convertible bonds outstanding.

Rocket Internet has a very good capital allocation with a gross cash position of 1.9 billion euros at the end of August 2017. The further repurchase of the convertible bonds is expected to contribute to a reduction in the financing costs, since the convertible bonds with 3.0% per annum interest rate and, in the case of a conversion, could lead to a dilution.

The repurchase of the convertible bonds is carried out by means of one or several credit institutions on the basis of Rocket Internet specifications.

The repurchase may be suspended and resumed at any time. Rocket Internet will announce the completion of the repurchase program.