Burberry Final Terms Inaugural Sustainability Bond

BURBERRY GROUP PLC

BURBERRY ANNOUNCES FINAL TERMS OF INAUGURAL, MEDIUM-TERM,  SUSTAINABILITY BOND 

Further to its announcement of 9 September 2020, Burberry Group plc ('Burberry' or the 'Company') is pleased to announce that it has now priced its inaugural Sustainability Bond. The final terms are for a £300,000,000 1.125% bond due 21 September 2025.

This will be the first sustainability labelled bond issued by a luxury fashion company and will diversify Burberry's sources of funding, introducing long-term financing into the Company's capital structure.  The proceeds will be used to finance and/or refinance eligible sustainable projects as described by Burberry's Sustainability Bond Framework.

As previously announced, the bond is expected to be rated Baa2 (stable outlook) by Moody's Investors Services, and will be issued pursuant to Burberry's Sustainability Bond Framework, which has received a 'second party opinion' from Sustainalytics.

Julie Brown, Chief Operating and Chief Financial Officer said: "We are delighted to announce the final terms of our inaugural Sustainability Bond.  Burberry has a longstanding commitment to sustainability and we are dedicated to using our position and influence to drive social and environmental improvements.  The addition of medium-dated financing to the capital structure will support liquidity and allow us to secure proceeds for investment in our sustainability agenda over the life of the bond".

15 September 2020

Relevant stabilisation regulations including FCA/ICMA will apply.  Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels).  No PRIIPs key information document (KID) has been prepared as not available to retail in the EEA or the UK.

This announcement is directed only at (i) persons who are outside the United Kingdom (the "UK"), or (ii) persons who are in the UK who are (a) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (b) otherwise, persons to whom this announcement may lawfully be communicated pursuant to the Order (all such persons together being referred to as "relevant persons"). This announcement is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.

The notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act).

A rating is not a recommendation to buy, sell or hold the notes and may be subject to suspension, reduction or withdrawal at any time.

This announcement is not intended to be distributed to or reviewed by anyone other than you. This announcement does not constitute an offer to sell or a solicitation of an offer to buy securities.

This announcement does not constitute nor form a part of any offer or solicitation to purchase or subscribe for securities in Singapore or elsewhere. The notes referred to herein have not been and will not be offered or sold or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor (as defined in Section 4A of the Securities and Futures Act (Chapter 289) of Singapore, as modified or amended from time to time (the "SFA")) pursuant to Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

Notification under Section 309B(1)(c) of the SFA - In connection with Section 309B of the SFA and the Securities and Futures (Capital Markets Products) Regulations 2018 of Singapore (the "CMP Regulations 2018"), the Issuer has determined, and hereby notifies all relevant persons (as defined in Section 309A(1) of the SFA), the classification of the notes as prescribed capital markets products (as defined in the CMP Regulations 2018) and Excluded Investment Products (as defined in MAS Notice SFA 04-N12: Notice on the Sale of Investment Products and MAS Notice FAA-N16: Notice on Recommendations on Investment Products).

Notes to editors

•        Founded in 1856, Burberry is a global luxury brand, headquartered in London

•        Burberry is listed on the London Stock Exchange (BRBY.L) and is a constituent of the FTSE 100 index.  Its ADR symbol is OTC:BURBY.

•        BURBERRY, the Equestrian Knight Device, the Burberry Check and the Thomas Burberry Monogram and Print are trademarks belonging to Burberry.