Burberry has priced its inaugural sustainability bond. The £300,000,000 (€330,000m-$390,000m) bond will bear an annual coupon of 1.125 percent and is due Sept. 21, 2025.
The U.K. firm indicated that it is the first sustainability labeled bond issued by a luxury fashion company. It will diversify Burberry’s sources of funding, introducing long-term financing into the company’s capital structure. The proceeds will be used to finance and/or refinance eligible sustainable projects.