Gränges issues SEK 600 million in medium-term sustainability bonds – Aluminum Insider
Swedish rolled aluminum company Gränges AB announced this week the successful placement of 600 million Swedish kronor (US $ 69.3 million) of sustainability bonds.
Newly issued bonds are senior five-year unsecured bonds. The medium-term bonds are due in 2026 and carry a 3-month Stibor + 1.20% coupon. Gränges says the interest was much higher than expected, as it was oversubscribed by over 400 million Swedish kronor (US $ 46.2 million).
Gränges’ new obligations are linked to three distinct objectives, each of which is of particular importance for promoting the sustainability of the company: reducing the carbon emissions of its own operations and the energy it purchases by 25% per year. compared to 2017 levels by 2025, reduce carbon emissions from original materials by 30% by 2025 and increase the use of recycled aluminum by 30% by 2025.
Sofia Hedevåg, SVP Sustainability at Gränges, said in a related press release that the company is happy with the popularity of its offering.
“Gränges is strongly committed to sustainability and it is encouraging to see the great interest of investors in supporting our sustainability strategy and goals. This commitment confirms that our sustainability and climate strategy is relevant, ambitious and credible. “
Danske Bank and Nordea were both involved in the issue as joint sustainability structuring advisers and joint lead managers.
Launched in 1873 in Stockholm, Sweden, as Trafik AB Grängesberg-Oxelösund, Gränges AB was resurrected in 2013 as a private company specializing in laminated aluminum heat exchangers. It currently employs nearly 1,800 people at two factories – one in Finspång, Sweden, which opened in its current configuration in 1972, and a second in Shanghai, China, opened in 1996. The company has capacity total of 420,000 people. metric tons per year and a total annual turnover of 13 billion SEK (1.35 billion USD).