Syndicated loans are classified as sustainable finance and meet key ESG criteria. Interest rates are adjusted annually based on the achievement of the targets defined by Hugobos across four ESG areas: reduction of CO2 emissions, percentage of female managers, fair working conditions of suppliers, and other uses. increase. Sustainable cotton. The company said in a media statement that it was Hugo Boss’ first financial product linked to sustainability standards.
The loan lasts for three years and includes two options to extend the term by another year in each case and an option to increase the credit amount by up to € 300 million. It replaces Hugo Boss’ existing syndicated loan totaling € 633 million. Loan Syndicate consists of nine international banks. The transaction was coordinated by Commerzbank, BNP Paribas and LBBW as co-lead managers. Commerzbank acted as an active bookrunner and documentation agent. BNP Paribas acted as a sustainability coordinator. LBBW involves raising funds as a facility agent. Bank of America, Bank of China, Deutsche Bank, DZ Bank, HSBC and ICBC are also involved.
Hugo Boss, a German luxury brand, has secured for the first time a syndicated loan with a sustainability element. The interest rate on the € 600 million loan is related to the fulfillment of well-defined sustainability standards. This loan provides additional financial flexibility to ensure the success of CLAIM 5’s growth strategy.
Hugo Boss attaches great importance to the topic of sustainability, which is firmly integrated into CLAIM 5’s growth strategy. Over the next few years, the company will further step up its sustainability efforts to provide both clear value and emotional engagement with consumers. Having already worked hard and set sustainability goals for the future, Hugo Boss has been included in the world of the prestigious Dow Jones Sustainability Index (DJSI) five times in a row. As a result, and as the only German company, Hugo Boss is ranked among the top three companies in the world’s industry with index qualifications.
“The success of the transaction reflects the lender’s great confidence in the growth strategy. The loan commitment provides additional financial flexibility to consistently and successfully implement CLAIM 5 over the next few years. You can get sex. It is also encouraged that loan terms are first linked to performance and progress in key areas of sustainability. ” Eve Muller, Chief Financial Officer of Hugo Boss Said in a statement.
Fiber2Fashion News Desk (GK)
Hugo Boss in Germany gets a syndicated loan with a sustainability element
Source link Hugo Boss in Germany gets a syndicated loan with a sustainability element