Mango refinances debt, linking to new ESG targets
Mango has refinanced its debt to link with its new environmental, social and corporate governance criteria, aiming to strengthen the brand's commitment to sustainability.
Mango has agreed with its banking pool to extend its main syndicated loan until 2028, which has an outstanding balance of £196 million (€236 million).
The operation involves a new syndicated loan for £166 million (€200 million), of which £124 million (€150 million) will be subject to straight-line depreciation until 2027. The remaining £41 million (€50 million) corresponds to a credit line that may be used until 2023 for investments in the company’s CAPEX. If executed, this will be amortised in a single bullet payment in 2028.
The company has also agreed with the banks the possibility of doubling the availability of credit lines through two revolving credit facilities for the total sum of £166 million (€200 million).
Mango has reduced the average cost of the loan by linking its cost to sustainable targets. The agreement involves achieving 100% use of sustainable cotton, recycled polyester and cellulose fibres of controlled origin by 2025. Along with reducing CO2 emissions by more than 10%.
CaixaBank managed the transaction, acting as a coordinating agent, agent bank and sustainability agent.
Margarita Salvans, CFO at Mango, said: "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."