The Metzingen fashion group Hugo Boss AG has secured a new loan. This aims to “ensure the successful implementation of the ‘Claim 5 Tochdown’ growth strategy,” the company explained on Tuesday.
According to the company, it is a revolving credit line with a sustainability component with a total volume of 600 million euros and a term of five years. The conditions are “tied to the fulfillment of clearly defined sustainability criteria,” explained the group.
The new loan was “significantly oversubscribed” and was intended to “offer the company additional financial flexibility,” according to a statement. It replaces the group’s previous syndicated loan and offers “two options to extend the term by another year each and an option to increase the loan volume by up to 300 million euros”.
According to the company, the loan syndicate consists of eleven international partners. The banks Commerzbank, BNP Paribas and LBBW “accompanied the transaction as joint coordinators and active bookrunners”. The financial companies Bank of America, Bank of China, BBVA, Deutsche Bank, DZ Bank, Goldman Sachs, HSBC and ING also took part.
Yves Müller, Hugo Boss’s chief financial officer and chief operating officer, praised the new agreement. “This successful transaction underscores the great confidence our lenders have in our company and its long-term potential,” he said in a statement. “The loan commitment provides us with the financial strength we need to implement our strategic priorities. In addition, the integration of sustainability criteria demonstrates our commitment to align financial decisions with our ESG goals.”
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