Guess champions sustainability in new €250m credit facility
Guess has entered into a £214 million (€250 million) revolving credit facility through its Swiss subsidiary, Guess Europe Sagl, linking with its sustainability targets.
The facility has an initial term of five years, with an option to extend the maturity date by up to two years and expand the facility by up to £85.7 million (€100 million), subject to certain conditions. It also replaces short-term borrowing arrangements with various banks totalling £102 million (€120 million).
Linking with the new facility, the Guess Sustainability Plan focuses on three key pillars of 'Operating with Integrity', 'Empowering our People' and 'Protecting the Environment'.
Under the third pillar, the interest rate for the new facility will be subject to an annual adjustment based on the achievement of specific sustainability goals including reducing greenhouse gas emissions, increasing the use of sustainably sourced materials and increasing the penetration of the company’s Guess ECO products.
Carlos Alberini, CEO of Guess, Inc., said: “Our new €250 million European credit facility reflects the importance of the European region to our overall company as our largest segment, as well as our lenders’ confidence in our strategy.
"We remain highly committed to our goal of protecting the environment and see sustainability as fully integrated into our operations. This new credit facility will not only provide incremental access to longer term capital but will also align financial incentives with our sustainability goals. In our Company, we continue to make every decision and take every action with the long-term in mind.”