The US clothing group Guess Inc. announced on Monday that its wholly-owned Swiss subsidiary Guess Europe Sagl had closed a EUR 250 million revolving credit facility with a sustainability-linked component.
The facility has an initial term of five years, with an option to extend the maturity date by up to two years and a further option to expand the facility by up to EUR 100 million, subject to certain conditions. The new facility replaces certain short-term agreements with various banks totaling EUR 120 million.
The Guess sustainability plan focuses on the three main pillars of integrity in business operations, empowerment of employees and protection of the environment. In line with the third pillar, the interest rate on the new facility will be subject to an annual adjustment dependent on the achievement of specific sustainability goals aimed at reducing greenhouse gas emissions, increasing the use of sustainably sourced materials and spreading the Guess increase eco products.
“Our new €250 million European credit facility reflects the importance of the European region to our entire business as our largest segment, as well as our lenders’ confidence in our strategy. We remain highly committed to our goal of protecting the environment and see sustainability as an integral part of our business operations,” commented Guess CEO Carlos Alberini in a statement.
“This new credit facility will not only provide us with additional access to longer-term capital, but will also align the financial incentives with our sustainability goals. In our company, we will continue to make every decision and every action with a long-term perspective,” added Alberini.