Stora Enso issues a new EUR 500 million green bond

Bond will be listed on the Luxembourg Stock Exchange

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Stora Enso
Image: Micheile Henderson on Unsplash

Stora Enso has successfully issued a new EUR 500 million (approximately Rs 4,398 crore) green bond under its EMTN (Euro Medium Term Note) program. The bond matures in December 2030 and pays a fixed coupon of 0.625%. The bond is issued under Stora Enso’s Green Bond framework, published in May 2018. The issue price was 99.211, equivalent to a yield of 0.707% and EUR mid-swaps +95 basis points.

There are no financial covenants included in the bond documentation. The bond will be listed on the Luxembourg Stock Exchange. The joint lead managers and bookrunners for the transaction are BNP Paribas, J.P. Morgan Securities, NatWest Markets, and OP Corporate Bank.

We’re very pleased with the issuance of our first euro green bond. This issuance fits our sustainable finance strategy well. It’s a good continuation from the SEK denominated green bonds issued in 2019 and 2020,” says group treasurer Pasi Kyckling.

The proceeds from the new bond will finance the acquisition of certified forestland in Sweden and operational expenditures of sustainable forest management, investments at Gruvön Mill and Ždirec sawmill for producing cross-laminated timber (CLT), Oulu Mill conversion from graphic paper to kraftliner, and an investment in a steam turbine at Maxau Mill that enhances renewable energy production and reduces its CO2 emissions.

Our third successful green bond issue is further evidence that our sustainability agenda supports our value creation in the bioeconomy. We are raising new finance to strengthen our position as a leading renewable materials company. Our eligible projects for green bond proceeds are contributing to solving global sustainability challenges and mitigating climate change with our eco-friendly and circular solutions”, says Annette Stube, executive vice president Sustainability.

 

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

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As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

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