Orexo strengthens its sustainability work by establishing a social financing framework
Uppsala, Sweden, March 8, 2024 - Orexo AB (publ), (“Orexo” or the “Company”) (STO:ORX) (OTCQX:ORXOY) today announces that the Company has established a social financing framework dated February 2024 (the “Social Framework”), which enables Orexo to issue social bonds and potentially raise social loans, as well as other type of debt instruments (together the “Social Financing Instruments”). The proceeds from any Social Financing Instrument will be used to finance and refinance, in whole or in part, future projects aimed at improving access to healthcare services for the treatment of substance use disorders and other related mental health issues, which are expected to deliver positive social impacts.
Nikolaj Sørensen, President and CEO of Orexo, said, “The social framework is the result of several years of systematic and thoughtful sustainability work and is fully aligned with our strategy to contribute to a more sustainable society for all. At the heart of this important work is improving the lives of those suffering from opioid dependence with pioneering and holistic treatment solutions. The social framework allows us to continue investing in social projects focusing on a stigmatized and underserved patient group.”
Proceeds from any Social Financing Instruments are fully dedicated to the financing of projects with a positive social impact and expected to help advance the following SDG and targets, as further described in the Social Framework:
|
Use of Proceeds Category |
UN Sustainable Development Goal |
SDG target |
|
Access to Essential Services |
3. Good Health and Wellbeing |
3.5 Strengthen the prevention and treatment of substance abuse, including narcotic drug abuse and harmful use of alcohol
3.8 Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all |
Morningstar Sustainalytics has conducted an independent review of the Social Framework and concludes it to be aligned with ICMA’s (International Capital Market Association) Social Bond Principles 2023 and the APLMA (Asia Pacific Loan Market Association)/LMA (Loan Market Association)/LSTA’s (Loan Syndications and Trading Association) Social Loan Principles 2023 (the “Second Opinion”). Additionally, Sustainalytics considers the Social Framework to be credible, impactful and to be aligned with the overall sustainability strategy of the Company and that the use of proceeds category will contribute to the advancement of UN Sustainable Development Goal 3 – Good Health and Wellbeing.
The Social Framework and the Second Opinion are available on Orexos’s website under the heading ESG Sustainable investing and Orexo intends to regularly report on the underlying social eligible projects which will be published on the Company’s website.
ABG Sundal Collier AB and Carnegie Investment Bank have acted structuring advisors in connection to the establishment of the Social Framework.
As announced today in a separate press release, Orexo contemplates to issue new senior secured callable floating rate social bonds under the Social Framework.
For further information please contact:
Nikolaj Sørensen, President and CEO
Fredrik Järrsten, EVP and CFO
Lena Wange, IR & Communications Director
Tel: +46 (0)18 780 88 00
E-mail: ir@orexo.com
About Orexo
Orexo is a Swedish pharmaceutical company with over 25 years of experience developing improved pharmaceuticals based on proprietary formulation technologies that meet large medical needs. On the US market, Orexo provides innovative treatment solutions for patients suffering from opioid use disorder and adjacent diseases. Products targeting other therapeutic areas are developed and commercialized worldwide with leading partners. Total net sales in 2023 amounted to SEK 639 million, and the number of employees to 116. Orexo is listed on Nasdaq Stockholm's main list and is available as an ADR on OTCQX (ORXOY) in the US.
For more information about Orexo please visit www.orexo.com. You can also follow Orexo on X, LinkedIn, and YouTube.
Morningstar Sustainalytics, a globally-recognized provider of ESG research, ratings and data, evaluated Orexo’s Framework and the alignment thereof with relevant industry standards and provided views on the robustness and credibility of the Framework. In no event shall the Social Financing Framework nor any portion thereof be construed as part of the offering, nor shall be considered as an offer or advertisement to buy a security, solicitation of votes or proxies, investment advice, expert opinion or negative assurance letter as defined by the applicable legislation.
The information was sent for publication, through the agency of the contact person set out above, on March 8, 2024, at 8 CET.