THE WHAT? Natura has raised $1 billion for what is said to be the first Latin American sustainability bond.
THE DETAILS The parent company for The Body Shop, Aesop and Avon announced that the international funding process had been completed, with the bond having a seven year term, maturing on 3 May, 2028.
Carried out by its subsidiary Natura Cosméticos S.A., with Natura & Co Holding S.A. acting as the guarantor, funds from the ESG bond will be used to refinance existing debt in line with the group’s liability management plan to improve its capital structure.
THE WHY The sustainability bond is said to align the company’s commitment to sustainability goals with its financial targets, with the beauty giant committing to meet two environmental performance indicators by 2026 year-end.
According to a press release, Natura will be reducing scopes 1, 2 and 3 of relative greenhouse gas emissions intensity by another 13 percent, as well as reaching 25 percent of post-consumer recycled plastic in plastic product packaging.
Roberto Marques, Executive Chairman and Group CEO of Natura &Co, stated: “The successful raising of US$1 billion in bonds linked to sustainability targets is a milestone for Natura &Co and for Natura, and is the largest-ever single issuance by a Brazilian issuer.
“The strong demand for the securities is a recognition by the market of the Group’s solid capacity to deliver social, environmental and financial results. Natura already has a long and consistent history of commitment to sustainability and is now taking a further step connecting and aligning financial and environmental targets.”