Stora Enso issues a new EUR 500 million green bond

HELSINKI, Finland, Nov. 26, 2020 /PRNewswire/ -- STORA ENSO OYJ STOCK EXCHANGE RELEASE 26 November 2020 at 09.00 EET

[THIS ANNOUNCEMENT IS NOT BEING MADE IN, AND COPIES OF IT MAY NOT BE DISTRIBUTED OR SENT INTO, THE UNITED STATES, THE UNITED KINGDOM OR JAPAN.]

Stora Enso has successfully issued a new EUR 500 million green bond under its EMTN (Euro Medium Term Note) programme. The bond matures in December 2030 and pays a fixed coupon of 0.625%. The bond is issued under Stora Enso's Green Bond framework, published in May 2018. The issue price was 99.211 equivalent to a yield of 0.707% and Euro Mid-Swaps +95 basis points.

There are no financial covenants included in the bond documentation. The bond will be listed on the Luxembourg Stock Exchange. The joint lead managers and bookrunners for the transaction are BNP Paribas, J.P. Morgan Securities, NatWest Markets and OP Corporate Bank.

"We're very pleased with the issuance of our first euro green bond. This issuance fits our sustainable finance strategy well. It's a good continuation from the SEK denominated green bonds issued in 2019 and 2020," says Group Treasurer Pasi Kyckling.

For example, the proceeds from the new bond will finance the acquisition of certified forestland in Sweden and operational expenditures of sustainable forest management, investments at Gruvön Mill and Ždirec sawmill for producing cross-laminated timber (CLT), Oulu Mill conversion from graphic paper to kraftliner, and an investment in a steam turbine at Maxau Mill that enhances renewable energy production and reduces our CO2 emissions.

"Our third successful green bond issue is further evidence that our Sustainability Agenda supports our value creation in the bioeconomy. We are raising new finance to strengthen our position as a leading renewable materials company. Our eligible projects for green bond proceeds are contributing to solving global sustainability challenges and mitigating climate change with our eco-friendly and circular solutions", says Annette Stube, EVP Sustainability.

More information about our Green Bonds is available at storaenso.com/greenbonds.

For further information, please contact:
Pasi Kyckling
SVP, Group Treasurer
tel. [phone]

Investor enquiries:
Ulla PaajanenSVP
Investor Relations
tel. [phone]

Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has some 25 000 employees in more than 30 countries. Our sales in 2019 were EUR 10.1 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com

STORA ENSO OYJ

IMPORTANT NOTICE

The distribution of this announcement may be restricted by law and persons into whose possession information referred to herein comes should inform themselves about and observe any such relevant legal restrictions. The information contained herein or any other information relating to the securities may not be distributed or published in the United States, the United Kingdom, Singapore, Japan or in any jurisdiction or under any circumstances in which such distribution or publication is not authorised or is unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy the securities referred to herein. There shall be no offer, solicitation or sale of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.

The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. In the United Kingdom, the information in this announcement may be distributed only to, and may be directed at, (a) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (b) high net worth entities falling within Article 49(2)(a) to (d) of the Order, and other persons to whom it may be lawfully communicated (all such persons together being referred to as "relevant persons"). Any person who is not a relevant person should not act or rely on this document or any of its contents. In addition, this communication is, in any event only directed at persons who are "qualified investors" (within the meaning of Article 2(e) of Regulation (EU) 2017/1129.

MiFID II professionals/ECPs-only - Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels).

For further information, please contact:
Pasi Kyckling
SVP, Group Treasurer
tel. [phone]

Investor enquiries:
Ulla PaajanenSVP
Investor Relations
tel. [phone]

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/stora-enso-oyj/r/stora-enso-issues-a-new-eur-500-million-green-bond,c3243870