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Swedish clothing retailer H&M has revealed it has signed a new €980m (£859m) revolving credit facility as it looks to strengthen its liquidity amid the coronavirus outbreak.
H&M said it is a 12 month deal with a six months extension option and is in addition to the company’s undrawn €700m (£614m) RCF signed in 2017 and maturing in 2024.
The retailer added that the group’s liquidity “remains good” and it is continuing its work to set up a combination of different financing solutions.
The facility was supported by a group of H&M Group’s relationship banks. SEB acted as co-ordinator, joined by BNP Paribas, Danske Bank, Standard Chartered Bank and Commerzbank.
Last month, the group reported a rise in sales in its first-quarter results, despite being “negatively impacted” by the outbreak of Covid-19.
For the period ended 1 December 2019, H&M reported an 8% increase in net sales to SEK 54,988m (£46,609m), compared with £51m in the year prior.
At the time it said: The H&M group is working extensively to manage the Covid-19 situation, the highest priority being the safety of employees and customers.
“While the H&M group’s transformation work continues at full speed, all activities in the company are now being carefully evaluated – including from a cost and risk perspective – so as to be able to mitigate the negative effects associated with the virus as far as possible.”
