H&M: launches environmentally friendly bond
(CercleFinance.com) - H&M said it has received strong demand from investors for an environmentally friendly bond, a move that confirms the recent increase in investor interest for sustainable finance.
The 500 million euro sustainability-linked bond - which will mature in 8.5 years' time, paying an annual coupon rate of 0.25% - has generated "great interest" on the market and was 7.6 times oversubscribed to, the Swedish budget fashion retailer said on Friday.
In contrast to green bonds - where the funds are linked to specific projects - sustainability-linked bonds are linked to a company's number of defined environmental targets.
Regarding H&M, these targets include, inter alia, an increased use of recycled materials and a reduction in the group's greenhouse gas emissions by 2025.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The 500 million euro sustainability-linked bond - which will mature in 8.5 years' time, paying an annual coupon rate of 0.25% - has generated "great interest" on the market and was 7.6 times oversubscribed to, the Swedish budget fashion retailer said on Friday.
In contrast to green bonds - where the funds are linked to specific projects - sustainability-linked bonds are linked to a company's number of defined environmental targets.
Regarding H&M, these targets include, inter alia, an increased use of recycled materials and a reduction in the group's greenhouse gas emissions by 2025.
Copyright (c) 2021 CercleFinance.com. All rights reserved.