In a pivotal financial move, Hugo Boss has successfully secured a substantial promissory note loan, amounting to €175 million, marking the company’s first foray into this financing avenue. The initial amount, originally set at €100 million, was significantly expanded due to robust demand, further enhanced by securing favorable interest rates.
The promissory note loan comprises four tranches, featuring various terms of three and five years, each offering a choice between fixed and variable interest rates. The funds generated from this financing initiative will be channeled into general corporate purposes, empowering Hugo Boss’s strategic initiatives.
CFO Yves Müller expressed the company’s gratification, stating, «Our successful entry into the promissory note loan market reflects our commitment to diversifying our financing resources. The substantial demand we encountered underscores the confidence in our company and our growth strategy. These funds will play a pivotal role in supporting additional investments under our ‘CLAIM 5’ initiative, notably within the strategic pillar ‘Organise for Growth’.»
Beyond immediate financial support, Hugo Boss intends to bolster its financial resilience and extend the average maturity of its financing portfolio through this promissory note issuance. Impressively, more than 70 institutional investors actively participated in this promissory note loan, with notable interest stemming from both European and Asian investors.
This remarkable financial transaction was conducted in collaboration with DZ Bank AG and Landesbank Baden-Württemberg, underscoring Hugo Boss’s unwavering commitment to fortify its financial standing and advance its growth agenda.
