HUGO BOSS has secured a €600 million ($705 million) revolving credit facility with sustainability-linked conditions, replacing its existing syndicated loan and providing additional financial flexibility for the company.
The terms of the loan are tied to the achievement of defined environmental, social and governance (ESG) targets. The credit margin will be reviewed annually and adjusted based on progress against those targets. According to the company, the facility was oversubscribed by lenders.
“The loan commitment ensures the financial strength we need to drive our strategic priorities,” said Yves Müller, chief financial officer and chief operating officer of HUGO BOSS. He added that linking the facility to sustainability criteria reflects the company’s intention to align financing decisions with its ESG objectives.
Under the agreement, HUGO BOSS has committed to reducing greenhouse gas emissions from its own operations (Scope 1 and Scope 2) by 2030. The targets also include reductions in Scope 3 emissions by the same date, covering indirect emissions across the value chain such as those from raw materials, manufacturing and transport.
The facility has an initial term of five years, with two options to extend the maturity by one year each. It also includes an option to increase the total amount by up to €300 million. The new loan replaces the company’s previous €600 million syndicated facility with immediate effect.
The financing was arranged by a syndicate of eleven international banks. Commerzbank, BNP Paribas and LBBW acted as joint coordinators and bookrunners, with BNP Paribas also serving as sustainability coordinator and documentation agent. LBBW is acting as facility agent, alongside participating banks including Bank of America, Bank of China, BBVA, Deutsche Bank, DZ Bank, Goldman Sachs, HSBC and ING.
