Cash handling company Loomis AB has issued 1.8 billion Swedish kronor in sustainability-linked bonds, securing lower borrowing costs by tying the debt to more stringent climate targets.
The issuance includes a 1 billion kronor three-year bond and an 800 million kronor five-year bond, with proceeds intended for general corporate purposes and refinancing existing loans, the company said.
The new bonds are linked to a target of reducing absolute Scope 1 and 2 emissions by 34% by 2027 from a 2019 baseline.
This represents a more ambitious goal than the one tied to its previous bonds, which targeted a 20% emissions reduction by 2025.
“The transaction was well received and met with considerable investor demand, as evidenced by an order book exceeding SEK 3 billion,” Chief Financial Officer Johan Wilsby said in a statement.
The interest rate on the new five-year bond is 1.05 percentage points over the Stibor benchmark, compared with a 1.35 percentage point margin on a similar bond issued in 2021.
Loomis also said it would use part of the funds to repurchase 930 million kronor of its bonds due to mature in 2026.
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Loomis AB on Friday reported a rise in third-quarter net profit, as contributions from recent acquisitions and improved efficiency helped counter a strong Swedish krona that weighed on revenue.