Södra issues green corporate bond
Södra is now inviting the capital market to take part and finance investments in Södra’s green industry. It will take the form of green corporate bonds, issued by Södra, to finance energy and environmental investments in the Group’s industry.
“The capital market has shown great interest in investing in Södra, which has a strong history in sustainability leadership. Our pulp mills are virtually fossil-fuel free already and these major investments will further strengthen our environmental performance and increase the production of renewable and green energy from the mills,” says Lars Idermark, President and CEO of Södra.
Södra, which is owned by 50,000 forest owners in southern Sweden, is expanding its pulp production capacity and has an investment programme of some SEK 6 billion in place, in addition to regular maintenance investments. Expansion of the Värö pulp mill accounts for the largest investment, but major investments are also being made in the mill at Mörrum. The investments are two-fold – to increase production capacity, and to make the mills more energy-efficient by installing, for example, condensation turbines and evaporation plants.
The framework for Södra’s green bonds has been reviewed by the Centre for International Climate and Environmental Research Oslo (CICERO), an independent research centre linked to the University of Oslo in Norway. CICERO has given Södra its highest “Shades of Green” rating – Dark Green.
Södra’s first Green Bond, which amounts to a total value of SEK 1 billion, has a 5 year maturity and was priced with a floating rate coupon of three-month STIBOR* +1.60 per cent annually. The Green Bond was issued under Södra’s Medium Term Note (MTN) programme.
SEB acted as lead arranger of the transaction and also served as advisor for the green framework.
*Stockholm Interbank Offered Rate
For questions, please contact:
Peter Karlsson, Interim Chief Financial Officer,
Tel: +46 (0)470 – 890 28
Johan Löfmark, Director Group Treasury,
Tel: +46 (0)470 - 891 35
Annica Gerentz, Senior Vice President Corporate Communications,
Tel: +46 (0)470 – 894 81
Tel: +46 (0)470 – 890 90
Södra was founded in 1938 and is the largest forest-owner association in Sweden, with a membership of more than 50,000 forest owners. We engage in modern and responsible forestry, and operate state-of-the-art mills in which we process our raw material. Through value-generating relationships and a long-term approach, Södra is leading the way for the next generation of forestry.