UPM raises EUR 600m in green bond offering

Finnish paper and forest products manufacturer UPM-Kymmene Oyj (HEL:UPM) announced it has raised EUR 600 million (USD 668.1m) from the issuance of its fourth green bond to invest in eligible projects and assets under its Green Finance Framework.

In particular, the transaction proceeds will go for sustainable forest and plantation management, climate-positive and circular bioeconomy adapted products and solutions, and renewable or carbon dioxide-free energy.

"With the successful fourth issuance, UPM further strengthens its position as one of the largest corporate Green Bond issuers in the Nordics with a total of EUR 2,350 million issued," UPM’s chief executive Tapio Korpeinen noted in a press statement on Wednesday.

The bond matures in August 2034 and bears a fixed annual coupon of 3,375%. It is expected to be rated BBB+ by S&P Global Ratings. The issuance was arranged by BNP Paribas, Danske Bank, JP Morgan, OP Corporate Bank and SEB.

(EUR 1 = USD 1.114)

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