STOCKHOLM – Swedish fast fashion giant, H&M Group has issued a €500m green bond with a maturity of eight years under its EMTN (Euro Medium Term Note) programme. The bond generated sizable interest among a broad international base of institutional investors and was more than 3.5 times oversubscribed.
The company says the net proceeds from the bond will be allocated towards eligible projects in five categories as defined in its Sustainable Finance Framework which was published on 1 September 2023. These are circular economy, green buildings, renewable energy, energy efficiency and sustainable water management & wastewater management.
“We are pleased to have been able to attract strong demand for our inaugural green bond from a large number of international investors. The transaction extends H&M Group’s debt maturity profile and supports our vision to lead the change towards achieving a circular fashion industry with a net-zero climate impact. We are also happy to see a broadening of our investor base, including several leading green investors, which confirms the ambition of our sustainability agenda,” said Adam Karlsson, CFO, H&M Group.
The bond will be listed on the regulated market Euronext Dublin and has been placed with the assistance of BNP Paribas, ING, J.P. Morgan, SEB and UniCredit. ING also acted as advisor for the Sustainable Finance Framework.
The Offering Circular and the Sustainable Finance Framework are available on H&M Group’s website at: