|Bid||7.44 x 0|
|Ask||7.50 x 0|
|Day's Range||7.35 - 7.50|
|52 Week Range||5.15 - 8.61|
|Beta (5Y Monthly)||0.67|
|PE Ratio (TTM)||41.38|
|Earnings Date||Nov. 05, 2020|
|Forward Dividend & Yield||0.34 (4.58%)|
|Ex-Dividend Date||Jul. 20, 2020|
|1y Target Est||5.59|
(Bloomberg Opinion) -- It’s important in the fashion world to make a big entrance and Chanel is doing just that with its inaugural 600 million-euro ($700 million) bond. It has chosen to issue debt that’s linked to environmental sustainability targets; the bond includes a penalty if the company doesn’t live up to its green goals.The famous French luxury brand — headquartered in London now — is showing up its British rival Burberry, whose sterling-denominated sustainable bond last week was a regular green issue. That one won’t incur any penalty for failing to hit its environmental targets.In attaching green strings to its bonds, Chanel is following the example set last year by Italian utility Enel SpA and more recently Novartis AG, a Swiss drugmaker. The five-year tranche will repay at 100.5% of face value on maturity if the company isn’t wholly reliant by then on renewable electricity, and the 10-year tranche will cash out at 100.75% if Chanel falls short on its greenhouse gas emission targets.The company is to be applauded for avoiding the “greenwashing” criticism that can be leveled at other so-called sustainable bonds. It achieved “carbon-neutral” status last year as part of its efforts to support the Paris climate change agreement.Chanel is interesting in that it doesn’t have a credit rating and it probably won’t be eligible for the European Central Bank’s and the Bank of England’s giant bond-buying programs (the company is based outside the euro area and yet the debt was issued in euros). As things stand, Chanel’s U.K.-issued notes won’t benefit either from the ECB’s plan to start buying sustainability-linked bonds next year. But it was still able to cut the coupon on offer during the sale process, and it secured strong demand anyway. Appetite for any kind of yield is still fierce among debt investors, and Chanel is a prized name for a debut bond sale.While coronavirus has taken a toll on the luxury industry, Chanel is in fashion’s premier league with more than $12 billion of net sales in 2019. The bond market has rewarded that. The price on the deal’s five- and 10-year maturities was tightened by 25 basis points to 95 and 125 basis points over their respective benchmarks, giving an implied rating that’s comfortably within the investment-grade bucket. Demand for the bonds was respectable at nearly three times the deal size.Having previously relied on private debt and bank loans, Chanel is coming to the public markets to refinance some of the 600 million pounds ($765 million) of Covid loans it has repaid to the BOE. So we probably shouldn’t read too much into what the bond debut says about the controlling Wertheimer family’s plans for the company. There has been speculation (denied by the Wertheimers) about an initial public offering or sale. Even if that isn’t the intention, it doesn’t hurt to have a profile in the debt markets.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Marcus Ashworth is a Bloomberg Opinion columnist covering European markets. He spent three decades in the banking industry, most recently as chief markets strategist at Haitong Securities in London.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Top executives, policy makers, scientists and activists gathered this week for the first-ever Bloomberg Green Festival. The virtual event focused on the core issues of climate change.Friday’s sessions centered around climate activism. Speakers included Varshini Prakash, co-founder of the Sunrise Movement, a leading voice for young Americans in the fight to stop climate change, and Noel Kinder, chief sustainability officer at Nike Inc.Enel SpA Chief Executive Officer Francesco Starace kicked off the final day of the Green Festival.Click here to register and watch the event. Sign up here to receive the daily Green newsletter. See Bloomberg’s real-time dashboard of climate and energy transition data.Planet’s Satellites Being Used for California Wildfires (1:30 p.m. NY)Daily, private satellite imagery is helping an enormous number number of professions do better work, from firefighting agencies monitoring wildfires, to supply chain managers ensuring their forest products are legal. Just last week Planet Labs co-launched the California Forest Observatory, a satellite and artificial intelligence collaboration that lets firefighters see in real time where a conflagration is headed and how much vegetation is at risk.“What we’re trying to ultimately do is help you make smarter decisions on the ground,” said Will Marshall, CEO and co-founder of Planet Labs Inc.Easy-to-access, relatively inexpensive satellite imagery can also check companies’ or governments’ claims about being sustainable. Satellite imagery from companies like Planet or Pachama, which Thursday became one of the first startups in Amazon.com Inc.’s Climate Pledge Fund, are already able to help verify the integrity of forest-based “carbon offset” programs. Satellites can spot illegal logging, mining, or any other structures that companies or governments may try to hide illicitly.“If you’re a country trying to do climate regulations and goals, you need to check that,” Marshall said. ”If you are a bank issuing green bonds, you need to check those supply chains. If your company is doing ESG targets, you need to measure it. If you don’t measure it, you can’t do anything about it. Satellite data again isn’t a silver bullet to these things but it helps a lot.”Climate Change Is a Civil-Rights Issue, Hip Hop Caucus Founder Says (10:17 a.m. NY)Climate change is a civil-rights issue because it disproportionately affects people of color, said Reverend Lennox Yearwood Jr., founder of the Hip Hop Caucus.“Climate justice is racial justice,” Yearwood said. “It’s important for us to ensure that our most vulnerable communities, no matter where they come from, are safe. And what we are seeing over and over again because of pollution, poverty, and now the pandemic and mix in the police brutality, it becomes a terrible mixture of injustice.”Companies Should Provide Paid Time Off to Help Black Employees Vote (9:42 a.m. NY)Companies could help make sure their employees vote, particularly Black workers, by giving them paid time off before and on election day, said David Clunie, executive director of the Black Economic Alliance.“We’ve seen more corporate action on civic engagement than ever this year, particularly in respect to racial equity,” he said. “Many black voters work in hourly jobs that don’t allow them to work remotely and have long commutes that make it challenging to vote near their homes on election day.”Indigenous People Are Being Forgotten During Pandemic, Activist Says (9:11 a.m. NY)The world isn’t collaborating with indigenous people during the pandemic, according to environmental activist Hindou Ibrahim.“The pandemic is hitting more and more the poorer people, and the indigenous people are among those who are in the remote areas,” she said. “The information we need is not reaching our communities.”Nike’s Sustainability Officer Optimistic About Corporate Sustainability Moves (9:06 a.m. NY)Noel Kinder, chief sustainability officer at Nike Inc., said he’s optimistic about how corporations have adopted sustainability commitments during the pandemic.“What gives me optimism is when I look around at other companies our size, almost with daily regularity, you see more and more commitments to the adoption of renewable energy, products that are based on sustainable principles,” Kinder said.Enel Plans to Issue Only Sustainable-Linked Bonds (8:12 a.m. NY)Enel SpA, Italy’s biggest utility, plans to issue only sustainable-linked bonds going forward, said Chief Executive Officer Francesco Starace.“As the world evolves more and more to a circular and sustainable economy, it makes sense that also financial instruments are tailored to that direction,” he said. “Why limit that to companies? Why can’t a government issue a sustainability-linked government bond. This is going to happen sooner or later, and probably Europe will lead in that quite soon.”Starace added that Europe is leading the way in transitioning to a low-carbon economy, while there are questions over developments in the U.S. and China.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Italy's biggest utility Enel has agreed a deal with French private equity group Ardian to offer battery storage to businesses in Canada. Ardian Infrastructure will own 80% of the venture while Enel X, the advanced energy services unit of the Italian utility, will hold the rest, the two groups said in a joint statement. Enel X will continue to operate and maintain the 30 megawatts of battery storage the venture already has in place and will also develop future projects across the Canadian province of Ontario.