April 8, 2020 / 11:19 AM / in 2 months

H&M borrows 980 million euros to boost liquidity buffer amid pandemic

FILE PHOTO: A man wearing a face mask walks past an H&M store at the deserted Gran Via street during the coronavirus disease (COVID-19) outbreak in Madrid, Spain, April 4, 2020. REUTERS/Susana Vera

STOCKHOLM (Reuters) - H&M (HMb.ST), the world’s second-biggest fashion retailer, said on Wednesday it had signed a 980 million euro ($1.1 billion) revolving credit facility to strengthen its liquidity buffer in light of the novel coronavirus pandemic.

H&M said in a statement the new 12-month bank facility with a 6-month extension option came in addition to an undrawn 700 million facility signed in 2017 and maturing 2024.

“The H&M group’s liquidity remains good. The group is continuing its work to set up a combination of different financing solutions,” the statement said.

H&M on April 3 unveiled plans to raise more cash amid other initiatives to mitigate effects from the spread of the coronavirus, as it warned it would make a loss for the first time in decades in its second quarter.

Bank SEB (SEBa.ST) coordinated the new facility.

Reporting by Anna Ringstrom; Editing by Bernadette Baum

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