Nobina issues green bus bond

The Nordic region’s largest public transport company, Nobina AB (publ), issued on Wednesday, 6 February its first green bond to finance buses. The bond of SEK 500 million with a five-year tenor has a floating rate coupon of STIBOR 3 months plus 155 basis points, which corresponds to an initial coupon of circa 1.47 percent. The bond is also the first green bond linked to the public transport sector in the Nordic region and the rapid green transition currently taking place, with electric and fossil-free buses.

Public transport is an important part of the solution towards a sustainable, transport-smart and fossil-free society and investors have shown considerable interest in contributing to the rapid transition with electric and fossil-free buses.

“We are delighted with the considerable interest from investors in our first green bond. The strong demand enabled an attractive financing cost for Nobina and has also broadened the company’s sources of funding. Over 70 unique investors from five different countries took part in the final order book and the transaction was more than two times covered. This transaction has clarified Nobina’s sustainability agenda and will accelerate the transition to a bus fleet operated solely on renewable energy,” says Nobina’s President and CEO Magnus Rosén.

Nobina has a clear sustainability profile and sustainability is a natural and integrated part of the company’s business. The proceeds from the bond will be used to finance:

– Electric buses

– Vehicles operated solely on biofuel

– Charging infrastructure for buses

Nobina’s green framework has been drawn up in accordance with ICMA’s “Green Bond Principles” and was examined by the independent climate and environmental research institute Cicero. The framework received the highest “Dark Green” rating, which is the first time a public transport company has achieved this level.

Swedbank and SEB were the arranging banks for the transaction and acted as advisors in drawing up the green bond framework. Gernandt & Danielsson acted as legal counsel. The company will apply to list the bond on the Nasdaq Stockholm Sustainable Bonds List.

The information was published, through the agency of the belowmentioned contact persons, on 7 February 2019, at 8:00 a.m.

For further information, please contact:
Mattias Gelinder, Group Treasurer & Head of IR, +46 72 967 02 61
Per Skärgård, CFO, +46 8 41 06 50 56

About Nobina
Nobina is the largest and most experienced public bus transport service provider in the Nordic region. The company’s expertise in prospecting, tendering and active management of public bus transport contracts in combination with long-term delivery quality makes Nobina the industry leader in terms of profitability, development and initiatives that promote a healthier industry.

Every day, Nobina ensures that close to one million people arrive at work, school or other activities by delivering contracted public bus transport services in Sweden, Norway, Finland and Denmark. In addition, Nobina offers special public transport services under the brand Samtrans in the Swedish market. The company has sales exceeding SEK 9 billion (2017/18), more than 11,000 employees, and is headquartered in Solna, Stockholm. For more information, see Nobina’s website: www.nobina.com

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