Natura &Co raises US$1 billion in Sustainability-Linked Bond offer

SÃO PAULO, May 4, 2021 /PRNewswire/ -- Natura &Co (B3 ? NTCO3; NYSE ? NTCO), which includes the Avon, Natura, The Body Shop and Aesop brands, concluded yesterday an international fundraising of US$1 billion in bonds linked to sustainability goals ("ESG Bond"). The issue was carried out by its subsidiary, Natura Cosméticos S.A. ("Natura"), with Natura & Co Holding S.A. acting as the guarantor.

The funds will be used to refinance existing debt, in line with the Group's liability management plan to improve its capital structure. The seven-year notes mature on May 3, 2028 and carry an interest coupon of 4.125% per year, to be paid on a half-yearly basis. The offer was the single largest Sustainability Linked Bond issuance to date in Latin America.  

Since 2007, Natura has been a carbon neutral company. In addition, the company has also been making a series of efforts to reduce its relative emissions, which fell 33% between 2007 and 2013, and an additional 11% through 2020.

The transaction commits Natura to meet two environmental performance indicators by 2026 year-end: i) reducing scopes 1, 2 and 3 of relative greenhouse gas ("GHG") emissions intensity by another 13%, and ii) reaching 25% of post-consumer recycled ("PCR") plastic in plastic product packaging. These goals are aligned with the Group's "Commitment to Life, Sustainability Vision 2030" and support Natura &Co's efforts to address the global climate crisis and adopt full packaging circularity.

The year 2019 is considered as the baseline for the targets stipulated in the issue and the penalty if these indicators are not reached is an increase of 65 basis-points in the interest rate as of November 2027.

Roberto Marques, Executive Chairman and Group CEO of Natura &Co, stated: "The successful raising of US$1 billion in bonds linked to sustainability targets is a milestone for Natura &Co and for Natura, and is the largest-ever single issuance by a Brazilian issuer. The strong demand for the securities is a recognition by the market of the Group's solid capacity to deliver social, environmental and financial results. Natura already has a long and consistent history of commitment to sustainability and is now taking a further step connecting and aligning financial and environmental targets."

Disclaimer
The ESG Notes were not and will not be registered under the US Securities Act of 1933, as amended ("US Securities Act"), and may not be offered or sold in the United States of America or to US persons without proper registration or an applicable registration exemption, except for qualified institutional buyers based on the exception provided for in Rule 144A of the US Securities Act, and may be offered to certain non-US persons, except in the United States and Brazil, based on Regulation S of the US Securities Act.

This Notice to the Market is disclosed for informational purposes only and shall not, in any circumstances, be construed as an investment recommendation, nor as an offer to acquire any securities issued by the Company.

About Natura &Co
Natura &Co is a global, purpose-driven, multi-channel and multi-brand cosmetics group which includes Avon, Natura, The Body Shop and Aesop. Natura &Co posted net revenues of R$ 36.9 billion in 2020. The four companies that form the group are committed to generating positive economic, social and environmental impact. For 130 years Avon has stood for women: providing innovative, quality beauty products which are primarily sold to women, through women. Founded in 1969, Natura is a Brazilian multinational in the cosmetics and personal care segment, leader in direct sales. Founded in 1976 in Brighton, England, by Anita Roddick, The Body Shop is a global beauty brand that seeks to make a positive difference in the world. The Australian beauty brand Aesop was established in 1987 with a quest to create a range of superlative products for skin, hair and the body.

SOURCE Natura &Co