Chanel has raised over €700 million ($758 million) from a privately-placed bond sale, people with knowledge of the matter said.

The London-based luxury fashion house is the latest big European business to raise debt privately, following similar deals for German engineering firm Robert Bosch Gmbh, Italian chocolatier Ferrero and French drinks maker Remy Cointreau.

These so-called US private placements are a form of private debt that allow blue-chip firms to directly tap institutional investors such as insurers. That enables borrowers to bypass volatility in public credit markets.

The move by Chanel comes after it cautioned that conditions in the luxury industry are growing more challenging, following double-digit growth in its sales and profit last year. Chanel Ltd. sales climbed 16% on a comparable basis to $19.7 billion in 2023, while operating profit rose 11% to $6.4 billion, it said in May.

Goldman Sachs Group Inc. and Societe Generale SA arranged the debt for Chanel, said the people, who requested anonymity when discussing private matters. The notes mature in 10 and 12 years.

Spokespeople for Chanel and Goldman Sachs declined to comment, while Societe Generale didn’t immediately respond to requests for comment.