Outlet malls operator VIA Outlets has successfully raised €600 million through its first-ever green bond issuance, signaling a strong demand for sustainable investments. The bond saw a total of 190 orders from institutional investors amounting to €3.6 billion, highlighting the recognition of VIA Outlets’ strong business performance and commitment to sustainability.
The primary use of the proceeds from the green bond will be to refinance the company’s existing secured debt, improving its financing and maturity profile. Additionally, the issuance will support VIA Outlets’ growth strategy in the coming years, which focuses on remodelling, remerchandising, and remarketing to redefine the outlet shopping experience.
In conjunction with the bond issuance, VIA Outlets also secured a €100 million revolving credit facility from various banks. This demonstrates the investors’ confidence in the business and further strengthens the company’s financial position.
By issuing a green bond, VIA Outlets aims to diversify its funding base and reduce its average nominal financing costs. The bond will enable the company to lower its financing costs by more than 50 basis points, falling below 1.7%.
CEO Otto Ambagtsheer views the green bond issuance as a significant milestone for VIA Outlets. It not only supports the company’s growth strategy but also aligns with its sustainability strategy, ‘Beyond Sustainable.’ This initiative was recently launched to future-proof VIA Outlets’ centers from a digital and sustainability standpoint.
The success of VIA Outlets’ green bond issuance underscores the growing importance of sustainability in the fashion and retail industry. Many businesses recognize the value of incorporating sustainable practices into their operations to appeal to environmentally conscious consumers and meet the demand for responsible investing. VIA Outlets’ commitment to sustainable investment sets a positive example for other companies in the retail sector.
With the financial resources from the green bond, VIA Outlets can continue to pursue growth and innovation in the outlet mall industry while prioritizing sustainability. This landmark issuance solidifies the company’s position as a leader in the sector and sets the stage for further advancements in sustainable retail.
Links:
– VIA Outlets Official Website
– Green Bonds Definition and Explanation
