Spanish fashion brand Mango has signed a deal which will see it refinance its debt and link it to ESG (environment, social and governance) criteria.
The agreement, managed by CaixaBank, involves the issue of a new syndicated loan for the total sum of €200 million (US$216m) which will reduce if the brand achieves its 2025 targets of using 100 per cent ‘sustainable’ cotton and recycled polyester, as well as a 10 per cent reduction in scope 1 and 2 carbon emissions.
Margarita Salvans, Mango’s chief financial officer, commented “This is a historic transaction for the company. Not only is it the first time we have linked the cost of the debt to sustainability indicators, but we have also managed to extend the repayment calendar, improve its cost and double our financing capacity.”
