Hugo Boss, the renowned fashion brand, has achieved a major milestone by securing a promissory note loan of 175 million euros. This type of financing is a new venture for the company and demonstrates its ability to diversify its funding sources. Initially, the loan was set at 100 million euros but was increased due to strong demand. Moreover, Hugo Boss managed to secure a low interest rate, which adds to the attractiveness of the loan.

The loan consists of four tranches with varying terms of three and five years. It offers both fixed and variable interest rates, providing flexibility for Hugo Boss. The funds raised from this promissory note loan will be used for general corporate financing. This will help the company strengthen its financial foundation and extend the average term of its financing portfolio. Yves Müller, the Chief Financial Officer of Hugo Boss, expressed his satisfaction with this successful entry into the promissory note loan market. He believes it diversifies their financing mix and demonstrates investors’ confidence in the company and its growth strategy.

Hugo Boss intends to use the proceeds from the loan to finance additional investments in line with their growth strategy, known as “CLAIM 5.” Their strategic focus area, “Organise for Growth,” will particularly benefit from this financing. The company aims to leverage this funding to support its expansion initiatives and strengthen its position in the fashion industry.

The promissory note loan attracted significant interest from over 70 institutional investors. Europe and Asia, in particular, displayed strong demand for this opportunity. Facilitated by DZ Bank AG and Landesbank Baden-Württemberg, the transaction highlights the trust and support Hugo Boss receives from the financial sector.

In conclusion, this successful promissory note loan marks a crucial moment for Hugo Boss as it provides the necessary capital to pursue their growth plans and solidify their position as a leading global fashion brand.

Useful links:
Hugo Boss Investor Relations
DZ Bank Investment Banking