Statkraft taps green bond market

Norway’s Statkraft AS on Tuesday issued senior unsecured green bonds denominated in Swedish krona and Norwegian krone in a transaction it said was oversubscribed.

The state-owned renewables company divided the issuance into three tranches, issuing SEK 750 million (USD 71.9m/EUR 66.1m) in tranche 1, SEK 500 million in tranche 2, and NOK 3.75 billion (USD 355.1m/EUR 326.5m) in tranche 3, it said.

The SEK-denominated bonds mature in four years, while those in NOK mature in ten years.

The tranche 1 will pay a floating rate coupon of three months Stibor plus 0.53% per year. The tranches 2 and 3 bear fixed coupons of 3.398% and 4.50% per year, respectively.

Statkraft said that it will apply for the NOK-denominated green bonds to be listed at Oslo Stock Exchange and the SEK-denominated green bonds at Euronext Dublin.

The net proceeds from the bond issue will be used to finance eligible projects in line with the company's green finance framework.

Statkraft’s generation portfolio is largely made up of renewables -- hydro, solar and wind. The company also has five gas-fired power plants in Germany and no intention to grow further in the gas power segment.

(SEK 1.0 = USD 0.096/EUR 0.088)

(NOK 1.0 = USD 0.095/EUR 0.087)

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