The Swedish clothing group Hennes & Mauritz AB (H&M) has issued a bond worth 500 million euros to specifically advance key sustainability projects.
The eight-year bond attracted great interest from international institutional investors and was 3.5 times oversubscribed, the parent company of brands such as H&M, Cos, Monki, Weekday, & Other Stories and Arket said on Thursday .
The clothing retailer wants to use the money collected to support projects in five categories that were defined in the “Sustainable Finance Framework” sustainability concept at the beginning of September. These include the areas of circular economy, green architecture, renewable energies, energy efficiency and sustainable water and wastewater management.
Adam Karlsson, the group’s Chief Financial Officer (CFO), was satisfied with the reaction to the new bond. “We are pleased that we have seen strong demand from numerous international investors for our first green bond,” he said in a statement. “The transaction expands the H&M Group’s debt repayment framework and supports our vision of leading the shift towards a circular fashion industry with a net-zero effect on the climate.” The company has also succeeded in broadening its investor base while also “ to attract numerous leading green investors,” emphasized Karlsson.