Epiroc Issues Green Bonds for Eco-Friendly Solutions
Epiroc, a prominent sustainability and productivity partner for the mining and infrastructure sectors, has issued a second round of green bonds to finance the development of sustainable products and solutions that will help achieve a more eco-friendly world.
Epiroc has issued a SEK 1.5 billion green bond, its second such issuance following the first one in September 2022. The bond received a strong response from investors, with an order book nearing SEK 3 billion.
The bond has a five-year tenor, with one fixed and one floating interest rate tranche. The fixed tranche amounts to SEK 1 billion with a 4.063% coupon, while the floating tranche is SEK 0.5 billion with an interest of 3M STIBOR plus 1.10%.
The bond is part of Epiroc's Euro Medium Term Note (EMTN) programme and references the company's Green Bond Framework, available on its Debt page. Danske Bank and Handelsbanken acted as Joint Lead Managers for the transaction, and the bonds will be listed on Euronext Dublin.
Epiroc's CFO, Håkan Folin, stated that the proceeds from the green bond issuance will support the company's sustainability goals for 2030 and finance sustainable investments, helping to drive the transformation towards a more sustainable industry and society.
Epiroc can use the green bond proceeds to finance sustainable investments in three categories: 1) products and production technologies such as battery-electric machines, digitalisation solutions, and environmentally friendly materials, 2) energy efficiency solutions like design optimisation and solar panel installation, and 3) sustainable water and wastewater management such as efficient drilling equipment and reducing wastewater.