Södra issues green corporate bond


Södra is inviting the capital market to take part and finance investments in Södra’s green industry. It will take the form of green corporate bonds, issued by Södra, to finance energy and environmental investments in the Group’s industry.

«The capital market has shown great interest in investing in Södra, which has a strong history in sustainability leadership», says Lars Idermark, Chairman and CEO of Södra. «Our pulp mills are virtually fossil-fuel free already and these major investments will further strengthen our environmental performance and increase the production of renewable and green energy from the mills». Södra, which is owned by 50,000 forest owners in southern Sweden, is expanding its pulp production capacity and has an investment programme of some SEK 6 billion in place, in addition to regular maintenance investments. Expansion of the Värö pulp mill accounts for the largest investment, but major investments are also being made in the mill at Mörrum. The investments are two-fold: to increase production capacity, and to make the mills more energy-efficient by installing, for example, condensation turbines and evaporation plants. Södra’s first Green Bond, which amounts to a total value of SEK 1 billion, has a 5 year maturity and was priced with a floating rate coupon of three-month STIBOR (Stockholm Interbank Offered Rate) +1.60 per cent annually. The Green Bond was issued under Södra’s Medium Term Note (MTN) programme.