Chicago, Oct. 18 – H&M Finance BV priced the company’s first green bond deal in a €500 million offering (BBB) on Wednesday, according to a market source.
The bonds priced with a 4.875% coupon at 99.534 to yield 4.947%, or at mid-swaps plus 150 basis points.
Initial talk was in the mid-swaps plus 165 bps to 170 bps area.
The company may optionally redeem the bonds with a Bunds plus 35 bps make-whole premium until the three-month par call starts.
The active joint bookrunners were UniCredit (billing and delivery), BNP Paribas, ING, JPMorgan and SEB.
Proceeds will be used to finance eligible projects under the company’s sustainable finance framework.
The notes will be listed in Dublin.
A guarantee is being provided by H & M Hennes & Mauritz AB (publ).
The fashion and design company has a head office in Stockholm.
| Issuer: | H&M Finance BV
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| Guarantor: | H & M Hennes & Mauritz AB
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| Amount: | €500 million
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| Issue: | Green bonds
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| Maturity: | Oct. 25, 2031
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| Bookrunners: | UniCredit (billing and delivery), BNP Paribas, ING, JPMorgan and SEB
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| Coupon: | 4.875%
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| Price: | 99.534
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| Yield: | 4.947%
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| Spread: | Mid-swaps plus 150 bps, or Bunds plus 212.8 bps
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| Call features: | Make-whole call at Bunds plus 35 bps; three-month par call
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| Trade date: | Oct. 18
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| Settlement date: | Oct. 25
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| Rating: | S&P: BBB
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| Distribution: | Regulation S
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| Price talk: | Mid-swaps plus 165 bps to 170 bps area
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| ISIN: | XS2704918478
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