// Brazilian cosmetics company Natura &Co completes fundraising of $1bn in bonds
// The funds will be used to refinance existing debt
// The transaction commits Natura to meet 2 environmental performance indicators by 2026
The parent company of The Body Shop, Avon, and Aesop, has completed an international fundraising of $1 billion (£718 million) in bonds linked to sustainability goals.
The issue was carried out by its subsidiary, Natura Cosméticos S.A., with Natura & Co Holding S.A. acting as the guarantor.
The funds will be used to refinance existing debt, in line with the group’s liability management plan to improve its capital structure.
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The seven-year notes mature on May 3, 2028 and carry an interest coupon of 4.125 per cent per year, to be paid on a half-yearly basis.
The transaction commits Natura to meet two environmental performance indicators by 2026 year-end – reducing scopes 1, 2 and 3 of relative greenhouse gas (GHG) emissions intensity by another 13 per cent, and reaching 25 per cent of post-consumer recycled (PCR) plastic in plastic product packaging.
These goals are aligned with the group’s “Commitment to Life, Sustainability Vision 2030” and support Natura &Co’s efforts to address the global climate crisis and adopt full packaging circularity.
“The successful raising of $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,” Natura &Co executive chairman and group chief executive Roberto Marques said.
“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.”