Burberry Group announces its intention to issue a benchmark-sized, medium-dated, sterling public Sustainability Bond.
This will be the first sustainability labelled bond issued by a luxury company and will diversify Burberry’s sources of funding, introducing long-term financing into the Company’s capital structure.
Erykah Badu, Rosalía, Steve Lacy and Bella Hadid have been revealed as Burberry’s Twitch livestream hosts, who will begin with a pre-show conversation. Burberry’s show will use Twitch’s unique Squad Stream functionality, with the four Burberry hosts simultaneously streaming the show together live. This will provide virtual guests with the ability to view multiple perspectives of the pre-show conversation at once and converse through Twitch’s chat function, creating a personal, inclusive experience.
At the frontier of live entertainment, Twitch has evolved beyond its roots in online gaming to feature content spanning a broad spectrum of interests, including music and art. Inspired by the fashion house’s longstanding desire to push the boundaries in digital innovation, the collaboration with Twitch is the next step in Burberry’s journey to continually engage with its community through curated content and experiences.
Burberry has applied to be rated by Moody’s and expects the Bond to be rated Baa2 (Stable Outlook).
The Bond will be issued pursuant to the company’s Sustainability Bond Framework, which has received a ‘second party opinion’ from Sustainalytics.
The proceeds will be used to finance and/or refinance eligible sustainable projects as described by Burberry’s Sustainability Bond Framework. Burberry has a longstanding commitment to sustainability and is dedicated to using its position and influence to drive social and environmental improvements.
The company has a conservative capital allocation policy and already holds substantial liquidity. Following the outbreak of COVID-19, earlier in the year the Company drew down its £300 million Revolving Credit Facility (the ‘RCF drawings’) and issued £300 million of short-dated commercial paper under the Bank of England’s Covid Commercial Financing Facility (‘CCFF’), with a maturity in March 2021 (together, the ‘Debt Facilities’). The RCF drawings were repaid in full in the first quarter of FY 2020/21.
The Bond will rank pari passu with the Debt Facilities. The Bond will be guaranteed by the Burberry group entities which also guarantee the £300 million Revolving Credit Facility.
The Bond will be offered to professional investors and eligible counterparties. Applications will be made for the admission of the Bond to be listed on the Official List of the UK Listing Authority and to be traded on the Main Market of the London Stock Exchange.
