Swedish fashion group Hennes & Mauritz AB (H&M) has issued new bonds for the first time in two years. In doing so, he secured long-term financing and took in 500 million euros. Investors’ interest was great: demand exceeded supply seven times, the company announced on Thursday.
The bond issued by the H&M Group has a term of eight years and an interest rate of 3.4 percent. The repayment to investors must be made by 2033 at the latest.
Although bonds with a total value of 500 million euros were issued, there was interest in bonds worth 2.4 billion euros. This means that not all interested parties could be taken into account. H&M Group did not disclose how the bonds were allocated. The identities of the investors were also not disclosed.
“We are pleased to expand our investor base, which includes several leading investors and has strong geographical diversification. The high oversubscription of our bond clearly shows that investors value the steps we are making on our long-term path,” said Adam Karlsson, the chief financial officer (CFO) of H&M Group, in the statement.
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