Ocado has launched a £500m bond for expansion into global markets.
Funding construction of robotic warehouses
According to Ocado, the proceeds of the issue of the bonds will be used to fund new robotic warehouses and international expansion. Bondholders will receive between 0.75% and 1.25% interest per year, and are set to be repaid in full in 2025.
Ocado already has a number of commitments to build robotic fulfilment centres in markets where it has existing partnerships:
- Most recently, Ocado has partnered with Aeon to develop its online grocery business in Japan. The first customer fulfilment centres (CFCs) are set to go live in 2023
- In the US, Kroger has exclusive use of Ocado’s Smart Platform, with over 20 CFCs expected to be created over the next three years
- In March 2019, it was announced that Coles would have exclusive use of the Platform in Australia. Two new CFCs will be built in Sydney and Melbourne over the next few years
- In 2021, Ocado and ICA will complete the construction for a new CFC in Stockholm
- Ocado announced a partnership with Sobeys in January 2018 to use the Platform. A new CFC will be built in Toronto over the next two years
- In November 2017, a deal was agreed with Groupe Casino to build a new CFC in Paris
In the UK, Ocado is set to rebuild its Andover CFC after a fire, and is also building a new fulfilment centre in Purfleet, its fifth CFC. The retailer also recently announced it is building a new mini-CFC in Bristol to support same-day deliveries.
Keep up to date with developments at Ocado
See the latest Ocado news here and IGD Retail Analysis subscribers can learn more from our Ocado Strategic Outlook presentation.