Fashion and design brands company H&M Group announced the issuance ofits inaugural green bond, raising €500 million (USD$530 million) to support the company’s environmental initiatives, including its climate and circularity roadmap.

The offering of the 8-year bonds under H&M’s Euro Medium Term Note (EMTN) program saw strong demand, with the issuancemore than 3.5 times oversubscribed with a total order book in excess of €1.75 billion.

The offering follows the recent publication of H&M Group’s Sustainable Finance Framework, which included frameworks for both green and sustainability-linked financing.. The Green Finance Framework specifies eligible green projects for use of proceeds from green bond offerings, with categories including Circular Economy, Green Buildings, Renewable Energy, Energy Efficiency and Sustainable Water Management and Wastewater Management.

Adam Karlsson, CFO, H&M Group said:

“We are pleased to have been able to attract strong demand for our inaugural green bond from a large number of international investors. The transaction extends H&M Group’s debt maturity profile and supports our vision to lead the change towards achieving a circular fashion industry with a net-zero climate impact. We are also happy to see a broadening of our investor base, including several leading green investors, which confirms the ambition of our sustainability agenda.”