Pulp, paper and renewable materials company Stora Enso announced the issuance of a new €500 million green bond. The bond, issued under the company’s Euro Medium Term Note programme matures in December 2030 and pays a fixed coupon of 0.625%.
Stora Enso Group Treasurer Pasi Kyckling said:
“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.”
The bond was issued under Stora Enso’s green bond framework, published in 2018. The framework outlines eligible use of proceeds for green bond offerings, including sustainable forest management; renewable, low-carbon, and eco-efficient products, product technologies, and processes; energy efficiency; renewable energy and waste to energy; sustainable water management, and; waste management and pollution control.
According to the company, proceeds from the offering will go toward financing the acquisition of certified forestland in Sweden and operational expenditures of sustainable forest management. The company will also use the proceeds to invest cross-laminated timber production at its Gruvön Mill and Ždirec sawmill, conversion at its Oulu Mill from graphic paper to kraftliner, and to invest in a steam turbine at Maxau Mill that enhances renewable energy production and reduces CO2 emissions.
Annette Stube, EVP Sustainability, said:
“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.”
The joint lead managers and bookrunners for the transaction are BNP Paribas, J.P. Morgan Securities, NatWest Markets and OP Corporate Bank.