By Marisa Wong
Los Angeles, Sept. 8 – SKF AB announced it issued its second green bond, totaling €400 million, to fund eligible green projects in accordance with the group’s green finance framework.
The 3.125% six-year bonds priced at 99.291 to yield 3.257%. The yield spread was mid-swaps plus 95 basis points.
The bond received significant demand from investors, and it was oversubscribed more than six times, according to a press release.
SKF said the bond further connects its business strategy and funding approach to its sustainability commitment and climate targets.
Proceeds will finance continued investments in SKF’s intelligent and clean strategy, where potential projects totaling a significant amount of the bond’s value already have been identified, according to the release. These potential projects include capital investments and product development for cleantech as well as reduced energy consumption and waste both for customers and the company’s own operations, all part of the group’s ambitions to reach net zero greenhouse gas emissions in own operations (scope 1 and 2) by 2030 and in the supply chain (scope 3 upstream) by 2050.
The bond will be listed on the Luxembourg Stock Exchange and will also be displayed on the Luxembourg Green Exchange.
Based in Gothenburg, Sweden, SKF makes ball and roller bearings and sealing systems.
| Issuer: | SKF AB
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| Amount: | €400 million
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| Issue: | Green bond
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| Maturity: | Six years
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| Coupon: | 3.125%
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| Price: | 99.291
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| Yield: | 3.257%
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| Spread: | Mid-swaps plus 95 bps
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| Announcement date: | Sept. 8
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| Settlement date: | Sept. 14
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| Listing: | Luxembourg Stock Exchange; Luxembourg Green Exchange
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