Pandora Puts Money Where Its Mouth Is Via Sustainability Bonds
The performance-based bond terms would give investors a bigger payout if Pandora’s stated sustainability goals are not met in time.
![Pandora is offering a sustainability-linked bond, designed to motivate the jewelry company to reach its stated sustainability goals. 2022_Pandora store.jpg](https://uploads.nationaljeweler.com/uploads/dde7c4cb95129ed0360f535c04ac6246.jpg)
The company is selling a €500 million ($531 million) senior unsecured sustainability-linked bond with a five-year maturity.
This performance-based bond is designed to motivate Pandora to reach its stated sustainability goals within that time frame.
When the bond matures in 2028, Pandora will have to pay more to its investors if the goals have not been met.
The first two goals focus on specific emission reductions, both its own emissions and those in its value chain, with deadlines in 2025 and 2030.
As for its own emissions, Pandora said it plans to implement energy-saving measures and expand its use of renewable energy, in part by installing more solar panels at all of its facilities, including retail stores.
Sourcing renewable electricity will be the driving force behind reaching its target, said Pandora.
The third goal is to reach 100 percent use of recycled gold and silver by 2025.
In 2022, Pandora reported using 61 percent recycled gold and silver when crafting its jewelry, up from 54 percent in 2021.
The topic of recycled metals, and where they fit in terms of responsible sourcing, has been a point of discussion for jewelers in recent years.
Sustainable jewelry consultant Christina T. Miller recently held a webinar on recycled gold, delving into areas like its place in responsible sourcing practices and how it’s marketed.
“Because gold is a financial asset and often interchangeable with currency, the demand for newly mined gold is not impacted by the increased use of recycled gold,” said Miller on her website.
The notes will be issued March 10 with a price of 99.46 percent each and a fixed coupon (interest rate payments) of 4.5 percent per year. They will be listed on Euronext Dublin.
The net proceeds from the sale will go toward general corporate purposes and Pandora’s planned refinancing.
The majority of the funds will be used to repay its existing bank loan, said a Pandora spokesperson, leaving its net debt level unchanged.
In its recent full-year results, the company outlined its plans to open a total of 140 to 190 new stores between last year and this year, and expand its lab-grown diamond jewelry line, Diamonds by Pandora.
Pandora said investor demand for the bonds reached heights of €2 billion after a two-day marketing exercise.
“The successful issuance of our first ever Eurobond underpins our strong financial characteristics and marks an important milestone in our journey, allowing us to further diversify our funding structure,” said Pandora Chief Financial Officer and Executive Vice President Anders Boyer.
Two major credit agencies gave the bonds somewhat favorable ratings, Pandora said.
Moody’s gave the bonds a Baa2 rating, which it considers to be “a moderate credit risk,” while Standard & Poor’s rated the bonds at BBB, which it describes as “adequate capacity to meet financial commitments, but more subject to adverse economic conditions.”
Both of these ratings are in line with the issuers’ ratings of Pandora, said the company.
Danske Bank and Nordea served as the joint global coordinators while BNP Paribas, Danske Bank, Morgan Stanley and Nordea were the joint active bookrunners on the transaction. Nordea was also a ratings and sustainability advisor to Pandora.
Editor's Note: This story has been updated post-publication to correct the price of the notes and clarify Pandora's plans to reduce emissions.
The Latest
![These “Double Loop” earrings feature a drop-cut amethyst sitting atop the lower hoop, totaling 1.60 carats between both earrings. The hoops are made of silver covered in “pistacchio” colored enamel, while 9-karat yellow gold holds the stones in place and connect the two hoops behind the earlobe ($1,770). Bea Bongiasca’s Double Loop Earrings](https://uploads.nationaljeweler.com/uploads/f338ef6b4603be3c97765f833b831ca0.jpg)
Commemorate “brat summer” with these green hoops.
![The skyline of downtown Providence, Rhode Island. Jewelers of America held one of its Multifacted Learning Workshops there on July 17 and National Jeweler Editor-in-Chief Michelle Graff tagged along. Stock image of Providence, Rhode Island, skyline](https://uploads.nationaljeweler.com/uploads/4ec5b02d4cbaaaa2283bdcf6820950a4.jpg)
Editor-in-Chief Michelle Graff returns from Rhode Island with thoughts about in-store shopping and a trends report.
Sponsored by Gemological Institute of America
![Untitled design.jpg](https://uploads.nationaljeweler.com/uploads/583fbcb2bb839782810080debef35d3c.jpg)
As the demand for lab-grown diamond jewelry may still be increasing, the most notable change we are likely to see is price stabilization.
![Earlier this month, online giant Amazon and the Better Business Bureau filed a joint federal lawsuit against ReviewServiceUSA.com for allegedly selling fake reviews, both positive and negative. Amazon package outside door](https://uploads.nationaljeweler.com/uploads/27fce4225a38900d54a5536ce523a22d.jpg)
They claim ReviewServiceUSA.com was selling both positive and negative reviews of products and businesses.
![](https://uploads.nationaljeweler.com/uploads/99a46b30cc354962ac2e29ecd113587a.jpg)
![A shot of the Venetia diamond mine in South Africa, owned by De Beers Group. The diamond miner and marketer saw revenue drop 21 percent and rough diamond sales decline 20 percent in a “weak” market for diamonds. De Beers’ Venetia diamond mine](https://uploads.nationaljeweler.com/uploads/a1f16ceaaba662e80385166060d192a7.jpg)
Lab-grown diamond sales in the United States and ongoing economic challenges in China are impacting natural diamond demand.
A longtime member of IJO, she’s remembered for her passion for design, learning, and environmentalism.
![1872 x 1052 Gemolite.jpg](https://uploads.nationaljeweler.com/uploads/9d60901b44425a53b9010301897a3bbc.jpg)
GIA®’s most advanced microscope has new features to optimize greater precision and comfort.
![A malachite and diamond bracelet from Pomellato’s “Pom Pom Dot” collection, launched earlier this year. Pomellato and Boucheron were bright spots for Kering in an otherwise underwhelming first half of the year. Pomellato Malachite Pom Pom Dot bracelet](https://uploads.nationaljeweler.com/uploads/3c237b62e009742fc52487097daf3c5a.jpg)
The gains come amid a tough time for parent company Kering, which saw sales slide 11 percent in the first half of the year.
![A shot from the advertising campaign for LVMH-owned Bulgari’s “Eden the Garden of Wonders” high jewelry collection. LVMH’s jewelry and watch sales slipped in the first half of the fiscal year. Bulgari high jewelry campaign](https://uploads.nationaljeweler.com/uploads/c24eb75ca8cea44d2e9859648f4a98ee.jpg)
Tiffany & Co. is focusing on its “iconic” collections while the company has made changes at the top at TAG Heuer and Hublot.
![Chaumet, a Parisian jeweler owned by LVMH, has designed the Olympic and Paralympic Games medals. Chaumet Paris 2024 Olympics medals](https://uploads.nationaljeweler.com/uploads/7831b3a738baddfc7d783e6df0fbf796.jpg)
The Parisian brand is the first jewelry company in the history of the Olympic and Paralympic Games to design the medals.
![The acquisition of Union Life & Casualty by Jewelers Mutual will help strengthen both the pawn market and the insurance industry, said JM. Jewelers Mutual and Union Life and Casualty logos](https://uploads.nationaljeweler.com/uploads/195925667226ecfc51b4e1bb09607143.jpg)
Union Life & Casualty will join JM Insurance Agency Partners, expanding the provider’s pawnbroker coverage.
![The winner of this year’s Lonia Tate scholarship, Bradlei Smith will receive the opportunity to earn her Graduate Gemologist diploma from GIA and, following graduation, an internship at Ben Bridge Jeweler in Seattle. Bradlei Smith](https://uploads.nationaljeweler.com/uploads/996834935ae30a7a1195db8b9db6cb7d.jpg)
Los Angeles-based Bradlei Smith was selected for this year’s award.
![Peter Smith is an industry consultant, speaker, sales trainer, and author. He can be reached via email at TheRetailSmiths@gmail.com. National Jeweler columnist Peter Smith](https://uploads.nationaljeweler.com/uploads/bec7295a7f478778b1c196e6d81e7cd9.jpg)
In his latest column, Smith shares multiple reasons why people who look at the glass as being hall full often make better salespeople.
![De Beers Group mined 6.4 million carats of diamonds in the second quarter of 2024, down from 7.6 million in the same period last year. (©De Beers Group/Photo credit: Ben Perry @ Armoury Films) De Beers rough diamond display](https://uploads.nationaljeweler.com/uploads/80cd02b1c8384f4b2efda0bcdf6a75e1.jpg)
The company also reported the $150 million sale of an iron ore royalty right, part of its ongoing effort to divest “non-core” assets.
![In honor of its summer bridal event, Long’s Jewelers is partnering with Wequassett Resort and Golf Club on Cape Cod in Massachusetts, and jewelry brand JB Star on a vacation giveaway. Long’s Jewelers giveaway promo](https://uploads.nationaljeweler.com/uploads/4e7a90944c4e8875a4f3818dbe26b28b.jpg)
The giveaway is part of the New England jeweler’s summer bridal event.
![L.A.-based flower designer, Sophia Moreno-Bunge models Guzema’s “Hidden Beauty” collection in front of a garden in Rustic Canyon in Santa Monica, California. Sophia Moreno-Bunge of Isa Isa modeling Guzema’s Hidden Beauty collection](https://uploads.nationaljeweler.com/uploads/6f3822623eb7fd2f6468f82825194cb1.jpg)
The ad features three celebrity florists creating floral sculptures while wearing jewelry by Guzema.
![The Entrepreneurship Grants program supports winners with financial aid to scale their businesses and increase their societal impact, said Diamonds Do Good. Pictured here are three of the 13 winners, top right is Tresia Shituula, and bottom row left to right, are Monkgogi Moshaga and Mohamed Samu. Tresia Shituula, Monkgogi Moshaga, Mohamed Samu](https://uploads.nationaljeweler.com/uploads/a7c9b87301b76a9446f6522747ce5b95.jpg)
The grant provided a total of $100,000 to support 13 entrepreneurs from diamond communities in Africa and India.
![Ghazi Osta, better known as Gus, was the owner and president of Volusia Gold & Diamond, a store he and his wife, Leigh Osta, opened in 1986. He was shot and killed inside the store Friday afternoon after a brief argument with a regular customer. (Photo courtesy of Volusia Gold & Diamond Facebook page) Ghazi “Gus” Michel Osta](https://uploads.nationaljeweler.com/uploads/c8c1fa3df746cbd364915a98dcac9d21.jpg)
Ghazi Michel Osta, or “Gus,” was killed Friday by an 83-year-old man said to be a frequent customer at his store, Volusia Gold & Diamond.
![Elyssa Jenkins-Pérez (left) is the Responsible Jewellery Council’s new head of North American development, and Effie Marinos is its new specialist advisor for technical standards. Elyssa Jenkins-Perez and Effie Marinos](https://uploads.nationaljeweler.com/uploads/94332af0c7a776e7a8c36fabf76baa5f.jpg)
The organization also announced Effie Marinos as its new specialist advisor for technical standards, as well as four other appointments.
![Karen Rentmeesters, who joined the Antwerp World Diamond Centre in 2010, will take on the role of CEO. Karen Rentmeesters](https://uploads.nationaljeweler.com/uploads/3256fcc71cd43a399055c61f68486269.jpg)
Rentmeesters has served as interim CEO since April following former CEO Ari Epstein’s resignation.
![Longtime Washington, D.C., jeweler Brian Mann (right) with his wife Jessie Mann, an artist who custom-paints porcelain Limoges Boxes, at a 2016 Jewelers of America member event. Mann, the longtime co-owner of David Mann Jewelers, died June 21 at age 70. Brian and Jessie Mann](https://uploads.nationaljeweler.com/uploads/be4debc6e0b3198943a66ef0e2197c2c.jpg)
Mann, whose family’s jewelry store was located inside the Pentagon, is remembered for being a thoughtful champion of the industry.
![The 1916 Company recently opened a new Tudor boutique in Denver’s Cherry Creek Shopping Center. Tudor store in Denver](https://uploads.nationaljeweler.com/uploads/9f8600ea53ed731963331ebd28a10d16.jpg)
The 500-square-foot boutique is located in Denver’s Cherry Creek Shopping Center.
![This necklace from Messika’s “So Move Max” set is made of yellow gold with 19.18-carats of brilliant-cut diamonds and designed with circle motifs that move within the links (price upon request). Messika’s So Move Max Necklace](https://uploads.nationaljeweler.com/uploads/14c78af4a4e8c6b996a81bbb5a5bc69f.jpg)
Dance all night long with the “So Move Max” set’s necklace.
![On Sept. 1, Julien Tornare (left), current CEO of TAG Heuer, will become CEO of Hublot. Antoine Pin, now the general manager of Bulgari’s watch business, will take over Tornare’s role as CEO of TAG Heuer. (Images courtesy of LinkedIn) Julien Tornare and Antoine Pin](https://uploads.nationaljeweler.com/uploads/b24627b34ece895ddd254bae22751fb8.jpg)
Luxury giant LVMH is reshuffling the leadership in its watches division.
![A rendering of a billboard from Etsy’s new campaign. The campaign is designed to highlight the platform’s creators and how their products are made. Etsy billboard rendering in NYC](https://uploads.nationaljeweler.com/uploads/9a94f394f326b90dc1c9da6a711c5e09.jpg)
Sellers and shoppers have spoken out against a rise in mass-produced merchandise on the platform meant to highlight handmade goods.
![Ariana Grande said she cannot wait “to inspire others to embrace their own unique sparkle,” as Swarovski’s brand ambassador. (Photo credited to Mert Alas and Marcus Piggot for Swarovski) Ariana Grande Modeling in Swarovski Jewelry](https://uploads.nationaljeweler.com/uploads/adaa79dce0741a275427155078691611.jpg)
The celebrity will star in Swarovski’s holiday campaign.