Vestiaire Collective secures 75-million-euro sustainability-linked revolving credit facility

Luxury fashion resale platform Vestiaire Collective has signed a 75-million-euro sustainability-linked revolving credit facility (RCF) from Crédit Agricole CIB, Société Générale, HSBC Continental Europe, Bank of America and Goldman Sachs. The facility has an initial term of three years, which can be extended by two years.

While Crédit Agricole CIB is the acting ESG coordinator as well, Société Générale has taken on the additional responsibility of facility and security agent.

“This newly-signed RCF confirms the company’s commitment to sustainability, as it will feature potential interest rate discounts based on performance against key ESG targets, including the reduction of its GHG emissions,” explains Vestiaire Collective in a press release.

The resale platform added that the facility would provide it with greater flexibility to continue growing its business in Europe, the US and Asia Pacific, especially following its acquisition of peer-to-peer resale marketplace for women’s clothes Tradesy in April 2022 and the launch of its operations in South Korea in July 2022.

The overarching goal is to “accelerate on delivering its mission to transform the fashion industry for a more sustainable future”. Vestiaire Collective had made headlines a couple of weeks ago when it announced the decision to stop selling fast fashion items.