Statement issued by EROSKI on the MOU in relation to its AFS | EROSKI

Statement issued by EROSKI (a Mondragon coop) on the memorandum of understanding in relation to its AFS, presented by Kontsumobide (the Basque Consumer Affairs Institute)

  • EROSKI wishes to report its positive assessment of the mediation process brokered by Kontsumobide  (the Basque Consumer Affairs Institute) involving EROSKI (issuer), financial institutions (retailers) and several Consumer Associations acting on behalf of those people who have invested in the subordinated debt referred to in Spanish as Aportaciones Financieras Subordinadas (AFS).
  • In the memorandum of understanding signed by EROSKI and various financial institutions, the parties agree to make their utmost effort to ensure that EROSKI is able offer all the holders of its AFS a swap based on the following premises:

– Delivery of a subordinated bond issued by Eroski, whose face value would amount to fifty-five percent (55%) of the current face value of the AFS, with a maturity of twelve (12) years as of the date of the swap and an annual yield of 300 basis points over the Euribor (12 months).

– Cash compensation amounting to fifteen percent (15%) of the current face value of the AFS, to be paid out at the time of the swap.

  • This agreement provides a universal solution for all those people who have invested in the AFS, regardless of the financial institution involved in the purchase, the amount in question or the investors’ place of residence. The acceptance of this option by investors in the AFS is wholly voluntary, which means that those people who wish to remain in possession of their AFS may do so as at present.
  • This agreement does not require the reimbursement of any interest EROSKI has paid out to date for ’permanent’ AFS. Furthermore, EROSKI will pay the interest on the AFS corresponding to the 2013 financial year on 31 January 2014. Since the first issue, EROSKI has always paid the corresponding interest due, which has meant that investors in the AFS have already recouped a considerable part of their face value thanks to the interest accrued, amounting to as much as 63% in the case of the 2002 issues.
  • During this process, EROSKI has responded to all the requests made by the Kontsumobide, and has at all times shown its willingness to collaborate in order to reach an agreement that will satisfy all the parties involved within the framework of our responsibilities as issuer.
  • EROSKI also reports that it maintains a permanent channel of communication with its investors through its Investors’ Club, which can be contacted by phone on +34 946 211 248, or by email at