Sustainable Packaging Solutions Firm Stora Enso Raises €1 Billion via Green Bonds

The bonds have maturities of 3 years and 6.25 years


Renewable materials-based paper and packaging solutions company Stora Enso has issued two green bonds worth €500 million (~$536 million) each under its Euro Medium Term Note program. These bonds will be listed on the Luxembourg Stock Exchange.

These bonds aim to raise funds for eligible projects and assets that contribute to the transition towards a low-carbon and environmentally sustainable society, aligning with the Helsinki-based Stora Enso’s sustainability agenda and goals. The eligible asset categories include renewable energy, waste to energy, energy efficiency, and pollution control.

The bonds have maturities of 3 and 6.25 years, with fixed coupon rates of 4% and 4.25%, respectively. They are issued under Stora Enso’s new combined Green and Sustainability-Linked Financing Framework, launched in May 2023.

The three-year bond was issued at an issue price of 99.928, corresponding to a yield of 4.026% and Euro Mid-Swaps of +65 basis points. The 6.25-year bond was issued at an issue price of 99.64, yielding 4.32% and Euro Mid-Swaps +120 basis points.

Kaarlo Höysniemi, SVP Group Treasury at Stora Enso, said the issuance aligns well with the company’s sustainable finance strategy and sustainability commitments.

BNP Paribas, Crédit Agricole CIB, Danske Bank, and SEB were joint lead managers and bookrunners.

Green bond issuances have witnessed an uptick in the last couple of years. India completed the sale of ₹160 billion (~$1.9 billion) worth of sovereign green bonds, with the second tranche raising ₹80 billion (~$970 million) in February.

The Australian Government recently said it will introduce a sovereign green bonds program in 2024 to enable investors to support public projects driving Australia’s net-zero transition and boosting the country’s green finance market scale.

In an interview on the sidelines of the Mercom India Renewables Summit 2023, Chintan Shah, a Renewable Energy Expert, commented As India strives to achieve its non-fossil-based energy target of 500 GW set for 2030, the funding is going to be supported by the green bond market and not just the term lending.