// Mango has added sustainability goals to its business loan repayment terms
// Fashion retailer will refund less if it meets goals like using 100% sustainable cotton
Fashion retailer Mango has added sustainability criteria to its business loan terms for the first time.
When extending the repayment date of its main syndicated loan until 2028, Mango introduced sustainability targets, according to which the cost of the loan will decrease if the Spanish fashion retailer achieves 100% use of sustainable cotton, of recycled polyester and cellulose fibers of controlled origin by 2025, and reduces CO2 emissions of scopes 1 and 2 by more than 10%.
Margarita Salvans, Chief Financial Officer of Mango, said: “This is a historic transaction for the company. Not only is this the first time that we have linked the cost of debt to sustainability indicators, but we have also succeeded in extending the repayment schedule, improving its cost and doubling our financing capacity.
READ MORE: Less than 20% of retailers are on track to meet sustainability goals
Mango revealed last month that its profits hit their highest level in nearly a decade in 2021, as revenue approached pre-pandemic levels in 2019.
The fashion retailer reported sales growth of 21.3% to £1.8bn, with online sales accounting for 42% of turnover.
Profits reached £56m, tripling the £17.6m recorded in 2019.
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