Jewelry Maker Pandora Targets Recycled Gold

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The world of ethical debt has reached the high-street jewelry market. Denmark’s Pandora A/S offered a sustainability-linked bond that includes a target to use 100% recycled silver and gold by 2025.

The jewelry maker on Friday sold a debut €500 million ($531 million) sustainability-linked bond with a five-year maturity, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it.

The deal includes three sustainability performance targets, with the first two focused on reduction of emissions while the third specifies total use of recycled gold and silver within two years. The sharp growth of such SLB sales has slowed in the past year as companies face scrutiny over greenwashing and whether targets are too easy.

Pandora’s offering was part of efforts to ease its reliance on the bank loan market and to diversify funding sources. The company has reached “the size and strength” where it’s “natural” to get a rating and to have more sources of financing than just loans, the company’s Chief Financial Officer Anders Boyer said in an interview this week.

Proceeds from the sale will be used for general corporate purposes, including refinancing of existing debt, involving a bridge facility by some of the bookrunners, according to the person. The spread over mid-swaps on the notes tightened around 30 basis points between initial price talk and final terms and investor orders reached around €2.1 billion. The deal was managed by Danske Bank A/S, Nordea Bank Abp, BNP Paribas SA and Morgan Stanley.

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