15th Sep 2020 09:32
(Alliance News) - Burberry Group PLC on Tuesday said it will raise GBP300 million through the issue of 1.125% bonds due September 21, 2025, the company's first-ever sustainability bond.
"This will be the first sustainability labelled bond issued by a luxury fashion company and will diversify Burberry's sources of funding, introducing long-term financing into the company's capital structure. The proceeds will be used to finance and/or refinance eligible sustainable projects as described by Burberry's Sustainability Bond Framework," the trench coat maker said.
Julie Brown, chief of Burberry's operations and finance, said: "We are delighted to announce the final terms of our inaugural sustainability bond. Burberry has a longstanding commitment to sustainability and we are dedicated to using our position and influence to drive social and environmental improvements. The addition of medium-dated financing to the capital structure will support liquidity and allow us to secure proceeds for investment in our sustainability agenda over the life of the bond".
FTSE 100-listed Burberry had initially announced the sustainability bond issue earlier in September. The bond is expected to be rated Baa2 by Moody's Investors Service, with a stable outlook.
Shares in Burberry were up 0.4% at 1,565.00 pence each in London on Tuesday morning.
By Tapan Panchal; [email protected]
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