On Wednesday, February 13, Stora Enso borrowed SEK 6 billion in fixed and floating rate green bonds to finance the purchase of forest land from Bergvik Skog. Stora Enso develops and produces solutions based on wood and biomass for a range of industries and applications worldwide. It has 26 000 employees, in more than 30 countries.
The debt issuance was made up of three tranches worth SEK 3 billion, SEK 1.25 bn and SEK 1.75 billion maturing in 2021, 2024 and 2024, respectively. The two-year bond pays 0.85% over STIBOR and the SEK 1.25 billion bond pays 1.45% over STIBOR. The remaining SEK 1.75 billion 2024 bond pays a 1.875% coupon and was priced at par, according to a press release.
“Stora Enso has the long-term aim to secure funding partners that have sustainability as a fundamental part of their agenda. We are very pleased to successfully issue our first Green Bonds. The proceeds are intended entirely to finance our ongoing acquisition of forest assets in Bergvik Skog. This is fully in line with our Green Bond Framework, as Bergvik Skog’s forest lands are 100% certified to sustainable forestry,” says SVP Group Treasurer Pasi Kyckling.
“This successful Green Bond is further evidence that our Sustainability Agenda underpins core business processes, such as the raising of new finance to grow our share of the bioeconomy,” says Noel Morrin, EVP Sustainability.
The bonds will be listed on the Luxembourg Stock Exchange, and the bookrunners for the transactions were DnB, Nordea, and SEB.
More information on Stora Enso’s Green Bond framework is available here.
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