spot_img
Friday, March 29, 2024

Broseta advises on Mango´s first green loan deal

Broseta has advised the financial institutions that have granted Spanish clothing retailer Mango its first finance deal linked to ESG (environmental, social and governance) targets

-

Mango has agreed with its banking pool to extend its main syndicated loan, which has an outstanding balance of €236m (£196m), from 2023 to 2028.

The operation, which was signed this morning (19 April), involves the issue of a new syndicated loan for the total sum of €200m (£166m), of which €150m (£124m) will be subject to straight line depreciation – where the value of a fixed asset is reduced over its useful life – until 2027. The remaining €50m (£41m) correspond to a credit line that may be used until 2023 for investments in the company’s capital expenditure and which, if executed, will be amortised in a single bullet payment – a lump sum payment made for the entirety of an outstanding loan amount, usually at maturity – in 2028.

In addition, the company has agreed with the banks the possibility of doubling the availability of credit lines through two revolving credit facilities for the total sum of €200m (£166m), which would become available if the company deemed this necessary, it said.

Mango has managed to reduce the average cost of the loan by linking its cost to sustainable targets, among other indicators. This way, it has linked the margin to the company goals of using sustainable fibres and reducing CO2 emissions (scope 1 and 2). Specifically, the agreement involves achieving by 2025 a 100% use of sustainable cotton, recycled polyester and cellulose fibres of controlled origin, as well as reducing CO2 emissions (scope 1 and 2) by more than 10%. These targets have been validated in a “second party opinion” drafted by environmental consultant Anthesis Lavola.

CaixaBank managed the transaction, acting as a coordinating agent, agent bank and sustainability agent. The participating banks in the operation were: Banco Santander, Erste Bank, Deutsche Bank, Ibercaja and Unicaja.

“Environmental, social and corporate governance criteria are increasingly relevant in the financial sphere. At BROSETA we are proud and grateful for the trust placed in our Firm in this operation,” the firm said in a statement.

Broseta advised the financial institutions with a Barcelona office Corporate/Commercial team formed by partner Carlos Salinas Peña and lawyer Jaime Madero Romero.

- Advertisement -spot_img
- Advertisement -spot_img

MOST READ NEWS

BM assists AEW with two retail parks acquisition

AEW has been advised by Baker McKenzie on the acquisition of two prime retail parks in Spain: Rivas Futura, one of the largest prime...

Linklaters makes internal promotions in Madrid

After announcing the promotion of three partners and one counsel in Madrid, the firm has continued with its round of internal lawyer promotions, promoting...

ECIJA confirms alliance wth Taylor Wessing

With the aim of consolidating its position as a leading international TMT giant, and although this is a non-exclusive agreement, both firms will support...
spot_img
spot_img
spot_img
spot_img
- Advertisement -spot_img
error: