As companies are reeling from the effects of the global coronavirus outbreak, H&M has taken precautionary measures by borrowing €980 million to boost its liquidity buffer amid the pandemic.

According to Reuters, H&M's 12-month bank facility comes with a six-month extension option, on top of the retailer's €700 million facility from 2017, which matures in 2024.

“The H&M group’s liquidity remains good," H&M said in a statement. "The group is continuing its work to set up a combination of different financing solutions.”

H&M, which is the world's second largest fashion retailer, is prepping for a loss this quarter for the first time in decades. The company is planning to raise additional funds and launch other initiatives to aid in its recovery surrounding COVID-19.

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