LONDON – Burberry is pumping up its environmental efforts with plans to issue a sustainability bond meant to finance current and future projects.
It will be offered to professional investors and eligible counterparties. Applications will be made for the admission of the bond to be listed on the official list of the U.K. Listing Authority and to be traded on the main market of the London Stock Exchange. The bond will be held at the same rate as Burberry’s debt facilities, and will be guaranteed by the Burberry group entities, which also guarantee the 300 million pounds revolving credit facility.
Over the past two years it has changed its packaging, which is now made partly from recycled coffee cups, fully recyclable and certified by the Forest Stewardship Council. It is also working on reducing the plastic footprint of its transit packaging, and has introduced new transit hangers made from a bio-based compostable alternative. It has also switched its garment bags to a compostable PHA-blended material.
Burberry’s decision to issue the bond is part of trend among big luxury companies to seek funds to finance sustainability projects. In June, Salvatore Ferragamo SpA signed a credit deal with Intesa Sanpaolo SpA for a maximum amount of 250 million euros linked to the luxury brand’s ability to achieve certain sustainability goals.