Luxury fashion company Burberry announced that it has priced its inaugural sustainability bond, setting final terms for a £300 million 1.125% bond due 21 September 2025.
Burberry launched the bond offering on September 9, and previously announced that it expects it to be rated Baa2 (stable outlook) by Moody’s Investors Services. The bond will be issued pursuant to Burberry’s Sustainability Bond Framework, which has received a second party opinion from Sustainalytics.
According to Burberry, this will be the first sustainability labelled bond issued by a luxury fashion company and will diversify the company’s sources of funding, introducing long-term financing into the capital structure. The proceeds will be used to finance and/or refinance eligible sustainable projects as described by Burberry’s Sustainability Bond Framework.
Julie Brown, Chief Operating and Chief Financial Officer said:
“We are delighted to announce the final terms of our inaugural Sustainability Bond. Burberry has a longstanding commitment to sustainability and we are dedicated to using our position and influence to drive social and environmental improvements. The addition of medium-dated financing to the capital structure will support liquidity and allow us to secure proceeds for investment in our sustainability agenda over the life of the bond”.