Natura &Co, owner of The Body Shop, Avon, Natura and Aesop brands, has concluded an international fundraising of $1bn in bonds linked to sustainability goals.

The offer represents the single largest sustainability-linked bond issuance to date in Latin America, with the funds to be used to refinance existing debt, in line with the organisation’s liability management plan to improve its capital structure.

Natura & Co has been a carbon neutral company since 2007, and the company has been making a series of efforts to reduce its relative emissions, which fell 33 per cent between 2007 and 2013, and an additional 11 per cent through 2020.

The bond commits Natura & Co to meet two environmental performance indicators by 2026 year-end: reducing scopes 1, 2 and 3 of relative greenhouse gas emissions intensity by another 13 per cent and reaching 25 per cent of post-consumer recycled plastic in plastic product packaging. The year 2019 is considered as the baseline for the targets stipulated in the issue and the penalty if these indicators are not reached is an increase of 65 basis-points in the interest rate as of November 2027.

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