H&M has issued a €500m (£433m) sustainability-linked bond with a maturity of 8.5 years which will aim at providing incentives for the company to meet eco-friendly targets by 2025.
The annual coupon rate of 0.25% with the bond has already generated “great interest” and was 7.6 times oversubscribed, according to the group.
Following its new bond, the group revealed it has committed to achieving an increase in the share of recycled materials used to 30% by 2025, as well as reducing emissions from its own operations by 20%.
Additionally the retailer stated it will aim to reduce “absolute scope three emissions” from fabric production, garment manufacturing, raw materials and upstream transport by 10%.
Adam Karlsson, CFO, H&M noted that for the group, sustainability was an “integral part” of the company’s operations.
Helena Helmersson, CEO, added: “Our customers are showing on a daily basis that they appreciate H&M Group’s offering with the best combination of fashion, quality, price and sustainability.
“Today’s successful bond issue is proof that the financial market also values our ambitious sustainability work and we look forward to working together for a sustainable industry.”