The owner of beauty brands The Body Shop and Aesop, Natura &Co, has completed a round of fundraising worth US$1bn in bonds that are conditional on the business’ sustainability goals.
Natura said the seven-year notes, which will mature in May 2028, will be used to refinance existing debt, in line with the group’s plan to improve its capital structure.
The transaction commits Natura to reducing relative greenhouse gas emissions by a further 13% and reaching 25% of post-consumer recycled plastic in its brands’ packaging by the end of 2026.
“The successful raising of $1bn in bonds linked to sustainability targets is a milestone for Natura &Co and for Natura, and is the largest-ever single issuance by a Brazlian user,” said the company’s group CEO Roberto Marques.
“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.”
This type of investment, known as environmental, social and governance (ESG) Bonds, are debt instruments that encourage investments based on a company addressing sustainability and economic issues.
ESG Bonds have attracted attention from socially-minded investors that are supportive of social and environmental improvement as a key way to invest in corporates.