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Banks Tie Pandora Loan to Sustainability Targets
Apr 29, 2021 9:39 AM
By Rapaport News
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RAPAPORT... Pandora has signed a new EUR 950 million ($1.15 billion) credit facility whose pricing is linked to the progress it will make on twin sustainability objectives.
The credit line refinances Pandora’s current undrawn facility, which is scheduled to mature in May 2022 but whose size was not disclosed in the company’s statement Thursday. However, the Danish jeweler said that a EUR 400 million ($481.9 million) state-guaranteed Covid-19 loan had been repaid “ahead of time.”
The new facility’s pricing mechanism links borrowing costs to Pandora’s progress in achieving its environmental goals. These include becoming a carbon-neutral group in its own operations and using only recycled silver and gold in its products by 2025.
“This type of loan connects the company’s capital structure to our sustainability agenda and creates a very clear incentive for us to reach our targets,” said chief financial officer Anders Boyer. “It also confirms the financial community’s appreciation of our sustainability strategy.”
Pandora, which last year unveiled a restructuring in which it cut 180 jobs, switched to using 100% renewable energy at its crafting facilities in Thailand in 2020. Last year, it hired Martino Pessina as chief commercial officer to oversee a reconfiguration of the group’s global markets into 10 clusters for stronger focus and increased accountability.
On May 4, Pandora plans to unveil its first-quarter results, “a new company strategy, and its 2020 sustainability report,” it noted.
The company said its Covid-19 loan, which it obtained in May last year to secure liquidity amid the coronavirus outbreak but did not end up using, was due to mature December 31. Danish state investment fund Vaekstfonden had guaranteed about 70% of the emergency debt.
Lenders including Nordea, Danske Bank, UniCredit and BNP Paribas have provided the sustainability-linked revolving credit facility.
Image: A woman wearing Pandora charm bracelets. (Pandora)
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Tags:
Anders Boyer, Danish jeweler, Jewelry, Pandora, Rapaport News, sustainability
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