Guess is the latest fashion business to establish a credit arrangement which is strongly related to its capacity to achieve agreed-upon environmental standards.
The European credit facility of 250 million euros will be based on three major key pillars: operating with integrity, empowering our people, and protecting the environment.
The facility’s rate of interest will be adjusted annually depending on sustainability targets such as lowering greenhouse gas emissions, increasing the usage of sustainably produced fabrics, and boosting the incorporation of the Company’s Guess ECO goods.
Environmentally-linked credit facilities have grown in popularity in recent years as demand increases from investors and customers amongst both for businesses to demonstrate their commitment to sustainability policies.
The facility, according to Guess CEO Carlos Alberini, “highlights the importance of the European area to our whole organisation as our biggest division, as well as our funders’ trust in our plan.”
“We remain deeply dedicated to our mission of environmental protection and consider sustainability as completely interwoven into our activities,” he added.
Guess Europe Sagl, its wholly-owned Swiss subsidiary, has entered under the revolving credit arrangement.
The facility has a five-year initial term with the option to extend the maturity date by up to two years and increase the facility size by up to 100 million euros.
The facility substitutes Guess’s 120 million euro short-term lending agreements with multiple banks.
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