Natura &Co Raises $1 Billion in Sustainability-Linked Bonds - Network Magazine

Natura &Co Raises $1 Billion in Sustainability-Linked Bonds

by Maciej Maciejewski

Natura &Co, the umbrella company for Avon, Natura, The Body Shop and Aesop brands, has raised $1 billion in bonds linked to sustainability initiatives. The seven-year note will carry an interest coupon of 4.125% per year and is the single largest Sustainability Linked Bond ever issued in Latin America to date.

source: Pixabay

Funds raised will be used to refinance existing debt and improve the company’s capital structure. Natura will now commit to meet two milestones by the end of 2026, including reducing its greenhouse gas emissions intensity by another 13% and making 25% of its plastic product packaging post-consumer recycled plastic.

Natura has been a carbon neutral company since 2007, and reduced its emissions by 33% between 2007 and 2013, and another 11% by 2020. The baseline for the targets stipulated in the bond issuance will be derived from the year 2019. If Natura does not meet these targets, an increase of 65 basis-points in the interest rate will be induced as a penalty as of November 2027.

– The successful raising of US$1 billion in bonds linked to sustainability targets is a milestone for Natura &Co and for Natura, and is the largest-ever single issuance by a Brazilian issuer – said Roberto Marques, executive chairman and group CEO of Natura &Co. – The strong demand for the securities is a recognition by the market of the Group’s solid capacity to deliver social, environmental and financial results. Natura already has a long and consistent history of commitment to sustainability and is now taking a further step connecting and aligning financial and environmental targets.

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