Hugo Boss has successfully launched a commercial paper program (CP program), which enables the group to spend short-term, undisclosed bonds with a total amount of up to 500 million euros. This initiative is an important milestone to further strengthen Hugo Boss’s financial flexibility and to expand access to the capital markets beyond traditional banking financing.
The new CP program allows Hugo Boss to issue bonds in various currencies. The funds recorded are intended for general corporate purposes. The emissions are via Hugo Boss International BV and are fully guaranteed by Hugo Boss AG.
A crucial milestone
“The introduction of our commercial paper program is a crucial milestone in the further diversification of our financing strategy,” explains Yves Müller, Chief Financial Officer and Chief Operating Officer by Hugo Boss. “It increases our financial flexibility and offers us an extremely cost -effective instrument for short -term financing. This enables us to further optimize our financing costs and at the same time support the implementation of our long -term growth agenda.”
Although Hugo Boss’s CP program has not risen, the Step label (Short Term European Paper)-an initiative by the European Money Market Institute (EMMI), which promotes transparency and high quality standards on the European CP market. The STEP certification also facilitates the ability to refinance at the European Central Bank.
The commercial paper program was accompanied by ING Bank as a coordinator. The dealer group includes BNP Paribas, DZ Bank and InG Bank. Citibank Europe takes on the role of emission and paying agent. The legal advice for the issuer was carried out by White & Case.