Pandora opens new distribution centre in Canada
The new facility will handle Pandora's growing Canadian online business and reduces the company's exposure to US tariffs
Pandora links €950m loan to sustainability targets
Borrowing costs on new credit facility tied to the company's CO2 performance and use of recycled metals. Pandora also repays its EUR 400 million state-guaranteed COVID-loan ahead of time.
Pandora today secured a new EUR 950 million sustainability-linked revolving credit facility to refinance the current undrawn facility maturing in May 2022. The facility will be part of the company's liquidity reserve and has an initial five-year term, which may be extended by an additional two years.
The new facility has a pricing mechanism that links borrowing costs to Pandora's progress on two sustainability goals:
- Becoming carbon neutral in own operations by 2025
- Using only recycled silver and gold by 2025
Depending on the degree to which it meets the targets, Pandora's borrowing costs could rise or fall.
"Pandora has set out to become a low-carbon and circular business. This type of loan connects the company's capital structure to our sustainability agenda and creates a very clear incentive for us to reach our targets. It also confirms the financial community's appreciation of our sustainability strategy," says CFO Anders Boyer.
Pandora successfully switched to using 100% renewable energy at its Thai crafting facilities in 2020. By 2025, the company aims to become carbon neutral across all of its operations and move entirely to using recycled silver and gold. Silver and gold are the main materials used in Pandora jewellery, and recycled metals have significantly lower greenhouse gas emissions than newly mined metals.
Repays loan ahead of time
Today, Pandora also announced that it has repaid its EUR 400 million club loan ahead of the 31 December 2021 maturity date. The loan was obtained in May 2020 to secure liquidity following the outbreak of COVID-19. 70% of the loan was guaranteed by Vaekstfonden, the Danish state's investment fund.
"The uncertainty was extraordinary last Spring, and we found it prudent to arrange for extra funding. As it turned out, we did not need it, but we are grateful that the Danish state could provide us with a guarantee and pleased that we are able to repay the loan ahead of time," says Anders Boyer.
Pandora's sustainability-linked revolving credit facility is provided by the company's main relationship banks including Nordea, Danske Bank, UniCredit, SEB and BNP Paribas. Nordea and Danske Bank acted as joint coordinators. Nordea acted as documentation agent and sustainability coordinator, and Danske Bank acted as facility agent.
On May 4, Pandora will announce its Q1 results, a new company strategy, and its 2020 sustainability report.
About Pandora
Pandora is the world's largest jewellery brand. The company designs, manufactures and markets hand-finished jewellery made from high-quality materials at affordable prices. Pandora jewellery is sold in more than 100 countries through 6,800 points of sale, including more than 2,600 concept stores.
Headquartered in Copenhagen, Denmark, Pandora employs 27,000 people worldwide and crafts its jewellery at two LEED-certified facilities in Thailand. Pandora is committed to leadership in sustainability and will use only recycled silver and gold in its jewellery by 2025 and halve greenhouse gas emissions across its value chain by 2030. Pandora is listed on the Nasdaq Copenhagen stock exchange and generated sales of DKK 23.4 billion (EUR 3.1 billion) in 2021.