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.