The bond has two tranches as follows:
1) SEK 1 000 million matures in April 2025 and pays a floating coupon of STIBOR +2.20%.
2) SEK 700 million matures in April 2025 and pays a fixed coupon of 2.375%. The issue price is 99.744 and is equal to SEK-swap +220 basis points.
There are no financial covenants for the bonds. The bonds will be listed on the Luxembourg Stock Exchange.
The bookrunner for the transaction was Nordea.
Stora Enso had EUR 756 million cash and cash equivalents at the end of Q1 2020.
Additionally, the Company has a fully undrawn EUR 600 million Revolving Credit Facility and access to EUR 950 million statutory pension premium loans in Finland.
Furthermore, during April, Stora Enso has signed bilateral loan and credit facility agreements for EUR 400 million to increase liquidity.
“We’re pleased with the transaction that further increases our liquidity buffer during these uncertain times of Covid-19 crises.
Further we are pleased with issuance of our second green bond in SEK market.
This issuance fits our sustainable finance strategy well. It’s a good continuation for the SEK 6 billion green bond issued in 2019,” says Group Treasurer Pasi Kyckling.
For example, the proceeds from the new bond will finance the acquisition of certified forestland in Sweden, an investment at Gruvön Mill which produces cross-laminated timber (CLT) for high performance green buildings, and an investment in a steam turbine at Maxau Mill that enhances renewable energy production and reduces our CO2 emissions.
“This second successful green bond is further evidence that our Sustainability Agenda underpins core business processes, such as the raising of new finance to strengthen our position to lead the shift to a sustainable bioeconomy,” says Noel Morrin, EVP Sustainability.
Published on finance.yahoo.com