H&M Group has successfully issued a EUR 500 million green bond with an 8-year maturity, signaling a significant move towards sustainable finance. This green bond attracted immense interest, being oversubscribed by over 3.5 times, from a diverse group of international institutional investors.
The funds raised through this issuance will be dedicated to projects falling within five distinct categories, as outlined in the Sustainable Finance Framework introduced on September 1, 2023. These categories include Circular Economy, Green Buildings, Renewable Energy, Energy Efficiency, and Sustainable Water Management & Wastewater Management.
H&M Group's Chief Financial Officer, Adam Karlsson, expressed satisfaction with the strong demand for their inaugural green bond, emphasizing its role in extending the company's debt maturity profile.
Moreover, this move reinforces the group's commitment to leading the fashion industry towards circularity and a net-zero climate impact. It is also noteworthy that H&M Group's investor base has broadened to include prominent green investors, reflecting the company's commitment to sustainability.
The bond will be listed on Euronext Dublin, with support from financial institutions such as BNP Paribas, ING, J.P. Morgan, SEB, and UniCredit, while ING played a pivotal role as an advisor for the Sustainable Finance Framework.
