Husqvarna Group issues its first green bond

Rhea-AI Summary

Husqvarna Group successfully issues a green SEK-denominated 3-year bond worth 1,750 million under the Medium Term Note Program. The proceeds will be used for investments in low-carbon products and solutions, showcasing the Company's commitment to sustainability and long-term competitiveness.

Positive

• Successful issuance of a green bond to fund low-carbon investments
• Market confidence in Husqvarna Group's sustainable value creation
• Extension of footprint in the Swedish bond market
• Alignment with Green Bond Principles and Green Loan Principles
• Positive outlook on long-term competitiveness

Negative

• None.

STOCKHOLM, March 11, 2024 /PRNewswire/ -- Husqvarna Group has successfully placed a green SEK-denominated 1 750 million 3-year bond. The bond was issued under Husqvarna Group's Medium Term Note Program (MTN). The issuance followed a well-attended road show, where Husqvarna Group presented its business strategy and how it is linked to the Company's ESG targets.

With this transaction, Husqvarna Group extends its footprint in the Swedish bond market, and the proceeds will be exclusively allocated to investments in low-carbon products and solutions.

"The issuing of this green bond confirms the market confidence in Husqvarna Group's long-term competitiveness and in our sustainable value creation. The proceeds raised will support our investments in products and solutions contributing to a low-carbon economy", says Terry Burke, CFO at Husqvarna Group.

Husqvarna Group's Green Finance Framework enables the Company to issue green bonds and other green financing instruments. The proceeds will be exclusively allocated to investments in low-carbon products and solutions, green buildings, clean transportation, and renewable energy. The framework was developed in accordance with the Green Bond Principles (GBP) 2021 and the Green Loan Principles (GLP) 2023. Sustainalytics, a leading global provider of assessments related to green and sustainable financing, acted as second party opinion provider.

SEB acted as sole advisor on the establishment of the Green Finance Framework. Joint bookrunners were SEB, Danske Bank and Swedbank.

The Green Finance Framework and the second party opinion are available on Husqvarna Group's website.

For additional information, please contact:
Media
Henrik Sjöström, Head of External Communications
+46 727 15 77 85
press@husqvarnagroup.com 

Investors
Johan Andersson, Vice President Investor Relations
+46 702 100 451
ir@husqvarnagroup.com 

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/husqvarna-group/r/husqvarna-group-issues-its-first-green-bond,c3943406

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240311 Husqvarna Group Green bond

 

 

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SOURCE Husqvarna AB

FAQ

What type of bond did Husqvarna Group issue?

Husqvarna Group issued a green SEK-denominated 3-year bond worth 1,750 million.

How will the proceeds from the bond issuance be utilized?

The proceeds will be exclusively allocated to investments in low-carbon products and solutions.

What principles were followed in developing the Green Finance Framework?

The framework was developed in accordance with the Green Bond Principles (GBP) 2021 and the Green Loan Principles (GLP) 2023.

Who acted as the second party opinion provider?

Sustainalytics, a leading global provider of assessments related to green and sustainable financing, acted as the second party opinion provider.

Which banks were involved in the issuance of the green bond?

SEB acted as the sole advisor on the establishment of the Green Finance Framework, with joint bookrunners being SEB, Danske Bank, and Swedbank.