Chanel’s green bond comes with penalty if targets missed

The Business Times | Sep 26, 2020 at 2:00 AM
  • IT IS important in the fashion world to make a big entrance
  • It has chosen to issue debt linked to environmental sustainability targets, and this bond includes a penalty if the company falls short of its green goals.
  • The price on the deal’s five- and 10-year maturities was tightened by 25 basis points to 95 and 125 basis points over their respective benchmarks, giving an implied rating comfortably within the investment-grade bucket.