Shares of British luxury fashion company Burberry Group (LON: BRBY) have crept slightly higher today after the company announced the final terms of its sustainability bond.
The company are looking to raise £300 million through the issue of the 1.125% bonds, which Burberry announced on the 9th of September. The bonds are due on the 21st of September 2025.
“This will be the first sustainability labelled bond issued by a luxury fashion company and will diversify Burberry's sources of funding, introducing long-term financing into the Company's capital structure,” the company commented in its press release.
The money raised from the bonds will go into financing sustainable projects which fall under Burberry's sustainability bond framework.
Burberry's Chief Operating and Chief Financial Officer, Julie Brown, said “Burberry has a longstanding commitment to sustainability and we are dedicated to using our position and influence to drive social and environmental improvements.
“The addition of medium-dated financing to the capital structure will support liquidity and allow us to secure proceeds for investment in our sustainability agenda over the life of the bond”.
The news has seen Burberry's share price increase slightly on Tuesday. It closed Monday's session at 1559.5p per share and is currently trading at 1574.5p, up 0.96% at the time of this publication.
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