H&M Group has issued a €500m sustainability-linked bond that has been 7.6 times oversubscribed.

“For H&M Group, sustainability is an integral part of our operations. This type of bond creates a clear and transparent commitment and incentive for the company. It is an important step in our continued work to optimise the company’s capital structure, while at the same time providing investors with an opportunity to contribute to positive transformation of the fashion industry,” said Adam Karlsson, CFO.

The sustainable project targets that H&M Group has committed to achieving by 2025 are an increase in the share of recycled materials used to 30 per cent, a reduction in emissions from the Group’s own operations by 20 per cent and a reduction in absolute Scope 3 emissions from fabric production, garment manufacturing, raw materials and upstream transport by 10 per cent.

The bond will be listed on the regulated market Euronext Dublin and has been placed with the assistance of BNP Paribas, Commerzbank, Danske Bank, SEB and Standard Chartered. SEB also acted as advisor for the sustainability-linked bond framework.

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