Fast-fashion retailer Hennes & Mauritz AB is lining up its first bond sale in two years, just weeks after its shares surged following better-than-expected quarterly earnings.

The Swedish retailer plans to sell a €500 million ($583 million) 8-year senior unsecured bond, with proceeds to be used for general corporate purposes, according to a person familiar with the matter who asked not to be identified. It will hold calls with investors on Monday and Tuesday, with the sale expected thereafter.

The offering follows a surge in the company’s shares last month as a focus on its core H&M brand and tight cost controls helped a turnaround take hold. It marked the second consecutive quarter in which results have exceeded expectations, suggesting that chief executive officer Daniel Ervér’s strategy of spending on marketing and price promotions is translating into a more durable sales recovery. 

H&M was last active in Europe’s public debt market in October 2023, when it raised €500 million of eight-year green bonds, according to data compiled by Bloomberg. Those notes, issued by H&M Finance BV, have performed well since and are currently quoted at a price of about 108.3 euro cents after being issued at below par.

The retailer’s existing euro bonds are due in 2029 and 2031. Its new notes offering, which is being arranged by Banco Bilbao Vizcaya Argentaria SA, BNP Paribas SA, Citigroup Inc., Danske Bank A/S and Svenska Handelsbanken AB, will mature in 2033.

By Hannah Benjamin-Cook 

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