THE WHAT? Chanel has issued a €600 million sustainability-linked bond containing clauses connected to its environmental targets, according to a report published by Reuters.
THE DETAILS The move is the French fashion house’s first sally into the bond market and the 5- and 10- year deals are structured in such a way as to impose a premium on maturation should Chanel fail to meet certain climate-related goals, such as cutting emissions.
THE WHY? Chanel CFO Philippe Blondiaux told Reuters that linking its financing strategy to environmental targets was a ‘logical step’. “It’s… consistent with the company strategy, which is centred around travelling to a more sustainable model,” he told the media outlet.