SSAB Issues Sustainability Linked Bonds
Sustainability BondsSSAB

SSAB Issues Sustainability Linked Bonds

Sweden based SSAB AB has successfully issued a five-year senior unsecured sustainability-linked bond in the amount of SEK 2,000 million under its EUR

Sweden based SSAB AB has successfully issued a five-year senior unsecured sustainability-linked bond in the amount of SEK 2,000 million under its EUR 2bn EMTN programme, dated 2 June 2021. The new bond is due in June 2026 and carries a coupon of 3m Stibor + 185bps. The transaction generated strong interest from investors and the issue was oversubscribed. The proceeds will be used for general corporate purposes.

Sustainability-linked bonds are bonds tied to the performance of defined sustainability targets. SSAB intends to become the First in fossil-free steel and has tied the bond to SSAB’s newly launched environmental target for GHG emissions, which has been approved by the Science Based Targets initiative, stipulating a commitment to reduce SSAB’s GHG emissions by 35% by 2032 along with key actions set out between 2021 and 2032.

DNB Markets and SEB acted as financial advisors for the bond issue and SEB acted as advisor for the sustainability-linked finance framework.

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