#Sustainability
HUGO BOSS secures syndicated loan with sustainability component for the first time
Yves Müller, Chief Financial Officer of HUGO BOSS: "This successful transaction reflects our lenders’ great confidence in our growth strategy. The loan commitment gives us additional financial flexibility to consistently and successfully execute ‘CLAIM 5’ over the coming years. I am also encouraged that the terms of the loan are for the first time tied to our performance and progress made in the important area of sustainability."
The syndicated loan is classified as sustainable finance and as such fulfills key ESG criteria. The interest rate will be adjusted annually based on the achievement of target values defined by HUGO BOSS across four ESG areas: the reduction of CO2 emissions, the share of women in management positions, fair working conditions at suppliers, as well as the use of more sustainable cotton. This is the first financial instrument at HUGO BOSS to be linked to sustainability criteria.
The loan has a term of three years and includes two options to extend the term by one more year in each case, plus an option to increase the credit amount by up to EUR 300 million. It will replace the existing syndicated loan of HUGO BOSS totaling EUR 633 million.
The loan syndicate comprises nine international banks. The transaction was coordinated by Commerzbank, BNP Paribas, and LBBW as joint bookrunners. Commerzbank acted as active bookrunner and documentation agent. BNP Paribas took on the role of sustainability coordinator. LBBW accompanies the financing as facility agent. Also involved are Bank of America, Bank of China, Deutsche Bank, DZ Bank, HSBC, and ICBC.
HUGO BOSS attaches high importance to the topic of sustainability, which is firmly embedded in its ‘CLAIM 5’ growth strategy. During the next years, the company will further intensify its sustainability efforts to deliver both clear added value as well as emotional engagement with the consumer. With its efforts already made and sustainability targets set for the future, only recently, HUGO BOSS has been included in the renowned Dow Jones Sustainability Index (DJSI) World for the fifth consecutive time. Consequently, and as the only German company, HUGO BOSS ranks among the top three companies in its industry worldwide that have qualified for the index.
