The Jewelry Maker Pandora Targets Recycled Gold As A Source Of Revenue

The high-street jewelry market has been impacted by the ethical debt movement. Pandora A/S of Denmark provided a sustainability-related bond with a 2025 goal of using only recycled silver and gold.

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According to a person with knowledge of the situation who wanted to remain anonymous because they were not permitted to speak about it, the jewelry maker sold its first sustainability-linked bond on Friday for €500 million ($531 million).

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The agreement includes three sustainability performance goals, the first two of which are centered on reducing emissions and the third of which calls for using all recycled gold and silver within a two-year time frame. Given that businesses are being investigated for greenwashing and whether their aims are excessively high, the rapid increase of these SLB sales has halted in recent months.

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In an effort to reduce its reliance on the bank loan market and to diversify its funding sources, Pandora made this offer. Anders Boyer, the business's chief financial officer, said in an interview this week that the company has "the scale and strength" where it's "logical" to have a grade and to have different sources of financing than just loans.

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According to the individual, the sale's proceeds will be used for general company objectives, including the refinancing of current debt through the utilization of a bridging loan by some of the bookrunners. Between the initial price talk and the final conditions, the spread over mid-swaps on the notes narrowed by about 30 basis points, and investor orders totaled about €2.1 billion. A/S Danske Bank, BNP Paribas, and Nordea Bank managed the transaction.

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With 100 more stores scheduled to open by 2023, Pandora is expanding its brand. Despite strong earnings and plans to repurchase shares, its stock is up nearly 36% year-to-date.