Gränges has successfully issued a five-year senior unsecured sustainability-linked bond in the amount of SEK 600 million under the company’s MTN programme. The new bond is due in 2026 and has a coupon of 3 months Stibor + 1.20 per cent. The transaction generated a stronger than expected interest from investors and the issuance was oversubscribed with an order book growing to above SEK 1,000 million.
Gränges has tied the sustainability-linked bond to the achievement of three defined sustainability performance targets (SPTs), which all play a central role in Gränges’ sustainability strategy:
- SPT1: Reduce carbon emissions intensity from own operations and purchased energy (scope 1+2) by 25 per cent by 2025 compared to 2017
- SPT2: Reduce carbon emissions intensity from sourced metal inputs (scope 3) by 30 per cent by 2025 compared to 2017
- SPT3: Increase the share of recycled aluminium to at least 30 per cent of total sourced metal inputs by 2025
“Gränges has a strong commitment to sustainability and it’s encouraging to see the high interest among investors in supporting our sustainability strategy and targets. The engagement confirms that our sustainability and climate strategy is relevant, ambitious, and credible”, says Sofia Hedevåg, SVP Sustainability at Gränges.
Danske Bank and Nordea have acted as joint sustainability structuring advisors and Joint Lead Managers for the issuance.
Gränges launched a combined Green and Sustainability-Linked Finance Framework on September 20, 2021. More information about the framework is available on Gränges’ website, www.granges.com/investors/credit-market.