With 3 Billion Euros Of Government Support Loans, Adidas Began To Suspend Dividends.

Adidas has recently received a 3 billion euro government backed loan to ease its financial impact on the global spread of the new coronavirus. However, it is still impossible to give a full year outlook for 2020, and the first quarter results will be released in April 27th.

In order to cope with the spread of the new coronavirus, all countries around the world have taken restrictive measures to their people. The thirty-second Tokyo Olympic Games, scheduled to open in July this year, have also adopted postponed measures. It is evident that the global sportswear brand will be severely hit during the epidemic.

Adidas said that with the approval of the German government, the company has received a total of 3 billion euros of syndicated revolving loan from the Bank of Germany Fuxing credit bank. The loan will be priced according to the market conditions, involving the Bank of Germany, Fuxing credit bank, Citibank, HSBC, Standard Chartered Bank and other important international banks.

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Related banks, Adidas's request is to suspend dividend payments during the loan period. At present, Adidas's executive board has suspended the buyback of the company's stock and decided to give up its short-term and long-term dividend in 2020.