Hugo Boss says the interest terms of the EUR600m (US$679.8m) loan are linked to the fulfilment of clearly defined sustainability criteria.
The syndicated loan was significantly oversubscribed and aims to provide the company with additional financial flexibility for the successful implementation of its ‘Claim 5’ growth strategy, it adds.
The group outlined Claim 5 in August, with the strategy designed to to accelerate growth across all Hugo Boss brands, touchpoints, and regions.
“The successful transaction reflects the great confidence our lenders have in our growth strategy,” says CFO Yves Müller. “The credit commitment gives us additional financial leeway to implement ‘Claim 5’ consistently and successfully in the coming years. At the same time, I am extremely pleased that the terms of the loan are for the first time linked to our performance and progress in the so important area of sustainability. ”
A number of brands have made similar moves in recent months, with the John Lewis Partnership having signed a GBP420m (US$573.6m) five-year revolving credit facility linked to environmental targets last month.
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