SKF issues its second Green Bond; raises EUR 400 million to finance green investments

Rhea-AI Summary

SKF has launched its second Green Bond, raising EUR 400 million to finance green projects under its Green Finance Framework. This Bond supports SKF's sustainability goals, including achieving net-zero greenhouse gas emissions in its operations by 2030. Demand was high, with the bond being oversubscribed more than six times. The funds will be allocated to identify significant projects focused on cleantech and increased energy efficiency. This initiative reflects SKF's long-standing commitment to sustainability since it first issued a Green Bond in 2019.

Positive

• Raised EUR 400 million through the second Green Bond.
• Bond was oversubscribed more than six times, indicating strong investor demand.
• Aligns with SKF's goal of achieving net-zero greenhouse gas emissions by 2030.

Negative

• None.

GOTHENBURG, Sweden, Sept. 8, 2022 /PRNewswire/ -- SKF has issued its second Green Bond, which will raise EUR 400 million to fund eligible green projects in accordance with the Group's Green Finance Framework. The Bond further connects SKF's business strategy and funding approach to the Group's sustainability commitment and climate targets.

The proceeds from the Green Bond will finance continued investments in SKF's intelligent and clean strategy, where potential projects totaling a significant amount of the Bond's value already have been identified. These potential projects include capital investments and product development for cleantech as well as reduced energy consumption and waste both for our customers and SKF's own operations, as part of the Group's ambitions to reach net zero greenhouse gas emissions in own operations (scope 1 and 2) by 2030 and in the supply chain (scope 3 upstream) by 2050.

SKF's Green Bond received significant demand from investors, and it was oversubscribed more than six times. SKF has been driving sustainability initiatives for more than 20 years, of which the Green Bond is yet another example. In 2019, SKF was one of the first Capital Goods companies ever to issue a Green Bond.

Niclas Rosenlew, Senior Vice President and CFO, says: "It's great to see the continued strong interest and support for SKF and our ambitions to support sustainable industries and operate our business in a responsible, sustainable manner. We are committed to reduce friction, energy consumption and waste, this being a core part of our business. Issuing our second Green Bond further emphasizes the integration of sustainability into our strategic framework and day to day running of the business."

SKF has, as previously communicated, successfully allocated the EUR 300 million raised in the first Green Bond with 90 eligible projects. Read more about SKF's Green Finance Framework and find detailed information on the newly issued bond and terms of the issuance at https://investors.skf.com/en/green-finance-framework.

Fact box: SKF's Green Bond
Volume: EUR 400 million
Tenor: 6 years
Interest spread: MS+95 bps
Yield: 3.257%
Coupon: 3.125%
Price: 99.291%
Settlement day: 14 September 2022
Listing: Luxembourg Stock Exchange (LuxSE). The green bond will also be displayed on the Luxembourg Green Exchange (LGX).

Aktiebolaget SKF
      (publ)

For further information, please contact:
PRESS: Carl Bjernstam, Group Communication
tel: 46 31-337 2517; mobile: 46 722-201 893; e-mail: carl.bjernstam@skf.com

INVESTOR RELATIONS: Patrik Stenberg, Head of Investor Relations
tel: 46 31-337 2104; mobile: 46 705-472 104; patrik.stenberg@skf.com

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SOURCE SKF

FAQ

What is the amount raised by SKF's second Green Bond?

SKF raised EUR 400 million through its second Green Bond.

What are the key sustainability goals of SKF?

SKF aims to achieve net-zero greenhouse gas emissions in its operations by 2030 and across its supply chain by 2050.

When was SKF's second Green Bond issued?

SKF's second Green Bond was issued on September 8, 2022.

How was the investor demand for SKF's Green Bond?

The Green Bond was oversubscribed more than six times, showing strong investor interest.

What is the interest rate of SKF's new Green Bond?

The yield on SKF's new Green Bond is 3.257% with a coupon rate of 3.125%.