// H&M signs new credit facility worth £862m to strengthen financial position amid coronavirus crisis
// The retail giant was given a 6-month extension option to “further strengthen its liquidity buffer”
H&M Group has agreed to a new year-long revolving credit facility of €980 million (£862 million) to boost its financial status amid the coronavirus pandemic.
The fashion retail giant was also given a six-month extension option to “further strengthen its liquidity buffer and financial flexibility in response to the Covid-19 situation”.
The credit line has been arranged with H&M’s existing lenders, including SEB, BNP Paribas, Danske Bank, Standard Chartered Bank and Commerzbank.
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The Swedish firm already has an underdrawn €700 million (£615 million) revolving credit facility from 2017 that matures in the next four years.
H&M said it was “continuing its work to set up a combination of different financing solutions”.
For the three months to February 29, H&M Group’s net sales rose eight per cent year on year, but sales were impacted in the second half of the quarter by the pandemic.
Due to the pandemic, two million garment workers in Bangladesh have seen their jobs affected due to factory closures.
H&M Group, being the largest buyer of Bangladeshi apparel, said it was working with other businesses to support garment workers.
Covid-19 has reportedly caused the cancellation of an estimated £2.4 million in orders.
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