To finance sustainable investment, spending and R&D, Epiroc, the large Swedish mining equipment and technology company, yesterday issued SEK 2 billion of green bonds (approximately 187 million euros) with considerable investor interest and an order book of over SEK 3 billion. The term is five years and the bond has two tranches, one fixed and one floating.
“Epiroc plays a vital role in the transition to a low-carbon society,” says Håkan Folin, Chief Financial Officer of Epiroc. “This new funding will support us as we continue our sustainability journey and invest in innovative products and technologies that make our customers and our own operations more sustainable.
The SEK 1.5 billion fixed tranche has a coupon of 4.155% and the SEK 0.5 billion floating tranche was priced at 3M STIBOR plus 1.20%. The bond is issued under Epiroc’s Euro Medium Term Note (EMTN) program, with reference to Epiroc’s recently established green bond framework, which is available on Epiroc’s Debt page. The bonds will be listed on Euronext Dublin. SEB and Nordea acted as Joint Lead Managers for the transaction and SEB as Advisor for the Green Bond Framework.
Proceeds can be used to fund projects in the following three categories. The Green Bond Framework includes additional examples of how the product can be used.
- Products and production technologies. Examples of these may include battery electric machinery, diesel-to-battery conversion technology, Battery-as-a-Service product offerings, automation and digitization solutions that increase efficiency and reduce emissions , design for recycling, circularity and reuse of materials, and certified green raw materials. materials such as non-fossil steel.
- Energetic efficiency. This may include, for example, the development of design solutions and data management to optimize customer energy efficiency and the installation of solar panels in Epiroc’s production facilities.
- Sustainable water and wastewater management. This may include the development of efficient water well drilling equipment and the reduction of waste water in operations.
Epiroc’s ambitious 2030 sustainability goals include halving its CO emissions2and emissions. In 2021, Epiroc received validation from the Science Based Targets Initiative (SBTi) for its CO2 halving targets2e emissions from its own operations as well as from the use of products sold. SBTi has validated Epiroc’s climate targets as being in line with keeping global warming to a maximum of 1.5°C, in line with the latest climate science and the goal of the Paris Climate Agreement .