H&M Group Issues Inaugural €500 Million Green Bond

Image Credit: H&M Group

To support the financing of its circularity and climate roadmap, H&M Group has issued a €500 million green bond with a maturity of 8 years under its EMTN (Euro Medium Term Note) programme.

The net proceeds from the bond will be allocated towards eligible projects in five categories as defined in the Sustainable Finance Framework published on 1 September 2023: Circular Economy, Green Buildings, Renewable Energy, Energy Efficiency, and Sustainable Water Management and Wastewater Management.

The bond generated significant interest amongst a broad international base of institutional investors and was more than 3.5 times oversubscribed.

“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, of 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 an advisor for the Sustainable Finance Framework.