Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Burberry Plans Ethical Luxury Investment

The planned bond sale comes as the UK company starts to get over the worst effects of the coronavirus crisis.
Burberry store in Regent Street, London | Source: Shutterstock
By
  • Bloomberg

LONDON, United Kingdom — Burberry Group Plc is offering a touch of luxury to ethical investors.

The trench-coat maker intends to sell a sterling sustainability bond, as the socially responsible debt market increasingly grows beyond utilities, banks and governments. Calls about the five-year deal start on Thursday, according to a person familiar with the matter, who asked not to be identified because they’re not authorised to speak about it.

Burberry has highlighted a focus on corporate responsibility, including animal welfare and sustainable cotton farming, as it seeks to win over socially conscious consumers and investors. The planned bond sale also comes as the UK company starts to get over the worst effects of the coronavirus crisis, which caused sales to fall by almost half and prompted 500 job cuts worldwide.

The company has repaid a £300 million ($388 million) banking facility, which it drew down at the height of the virus crisis, it said in a statement announcing its first-ever bond sale. The strength of its brand, a strong presence in China and “robust” liquidity also meant that Moody’s Investors Service Inc. gave the planned notes an investment-grade Baa2 rating.

ADVERTISEMENT

Burberry’s score reflects “the global high awareness of its brand, balanced geographic diversification, and conservative financial policies,” Moody’s Vice President David Beadle, said in a statement.

Globally, the fashion industry is focusing more on the environment and sustainability amid consumer and regulatory pressure. An EU official called textiles the “new plastic” when it comes to trash earlier this year.

Companies in the industry have tapped ethical investors to help pay for projects. Prada SpA raised a sustainability-linked loan last year, while Timberland maker VF Corp. has sold green bonds. Luxury-carmaker Daimler AG also made a green-bond debut this month, following a German sovereign sale, while Orange SA will price €500 million ($588 million) of sustainable bonds today.

By Lyubov Pronina.

In This Article
Topics
Organisations

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Luxury
How rapid change is reshaping the tradition-soaked luxury sector in Europe and beyond.

Marine Serre: From Radical to Pragmatist

Serre, who grew sales by 20 percent in 2023, has been named Pitti Uomo’s next guest designer. She’s using the opportunity to show her men’s collection for the first time.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections