Stora Enso Issues a New SEK 1 700 Million Green Bond
STORA ENSO OYJ STOCK EXCHANGE RELEASE 23 April 2020 at 9.00 EEST
THIS ANNOUNCEMENT IS NOT BEING MADE IN, AND COPIES OF IT MAY NOT BE DISTRIBUTED OR SENT INTO, THE UNITED STATES, THE UNITED KINGDOM OR JAPAN.
HELSINKI, April 23, 2020 /PRNewswire/ -- Stora Enso has successfully issued a new SEK 1 700 million green bond under its EMTN (Euro Medium Term Note) programme and under Stora Enso's Green Bond Frame work published in May 2018. 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.
For further information, please contact:
Carl Norell
SVP, Financial Communications and Media Relations
+46-72-2-410-349
Investor enquiries:
Ulla Paajanen
SVP, Investor Relations
tel. +358-40-763 8767
Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has some 25 000 employees in more than 30 countries. Our sales in 2019 were EUR 10.1 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com
IMPORTANT NOTICE
This announcement is not being made in and copies of it may not be distributed or sent into the United States, the United Kingdom or Japan. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy the securities referred to herein. There shall be no offer, solicitation or sale of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.
The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Stora Enso Oyj does not intend to register any of the securities in the United States or to conduct a public offering of the securities in the United States.
This communication does not constitute an offer of the securities to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the securities. This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "Relevant Persons"). Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this document or any of its contents.
MiFID II professionals/ECPs-only - Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels).
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