Chicago, May 24 – Stora Enso Oyj priced €1 billion of bonds in a deal marked green across two tranches (Baa3//BBB-) on Wednesday, according to information from an entity involved in the deal.
The deal included two equal-sized €500 million tranches.
The first tranche comes with a 4% coupon and a three-year tenor. The bonds priced at 99.928 to yield 4.026%, or at mid-swaps plus 65 basis points. Price talk started at mid-swaps plus 95 bps to 100 bps.
The second tranche carries a 4.25% coupon and will mature in 6.25 years. The tranche priced at 99.64 to yield 4.32%, or at mid-swaps plus 120 bps. Price talk put the notes at mid-swaps plus 145 bps to 150 bps.
Each tranche will have a make-whole call option, at Bunds plus 25 bps for the shorter tranche and Bunds plus 30 bps for the longer tranche. The notes can be redeemed early at par one month before the maturity date for the three-year notes and three months before the maturity date for the 6.25-year notes.
Active bookrunners included BNP Paribas (billing and delivery), Credit Agricole CIB, Danske Bank and Skandinaviska Enskilda Banken.
The tranche sizes were set before pricing.
The first tranche was more popular with investors, with the order book building to €1.9 billion for the three-year notes. The 6.25-year notes had €1.65 billion of interest.
Proceeds will be exclusively allocated to finance or refinance new and existing capital expenditures, research and development and assets that are owned, controlled and managed by the issuer or its subsidiaries.
Stora Enso is a manufacturer of pulp, paper and other forest products. The company is based in Helsinki, Finland.
| Issuer: | Stora Enso Oyj
|
| Amount: | €1 billion
|
| Issue: | Green bonds
|
| Bookrunners: | BNP Paribas (billing and delivery), Credit Agricole CIB, Danske Bank and SEB
|
| Green adviser: | Skandinaviska Enskilda Banken
|
| Second-party opinion: | Sustainalytics
|
| Trade date: | May 24
|
| Settlement date: | June 1
|
| Ratings: | Moody’s: Baa3
|
| Fitch: BBB-
|
| Distribution: | Regulation S
|
| Marketing: | Investor calls
|
|
|
| Three-year bonds
|
| Amount: | €500 million
|
| Maturity: | June 1, 2026
|
| Coupon: | 4%
|
| Price: | 99.928
|
| Yield: | 4.026%
|
| Spread: | Mid-swaps plus 65 bps
|
| Call features: | Make-whole call at Bunds plus 25 bps; one-month par call
|
| Price talk: | Mid-swaps plus 95 bps to 100 bps
|
| ISIN: | XS2629062568
|
|
|
| 6.25-year bonds
|
| Amount: | €500 million
|
| Maturity: | Sept. 1, 2029
|
| Coupon: | 4.25%
|
| Price: | 99.64
|
| Yield: | 4.32%
|
| Spread: | Mid-swaps plus 120 bps
|
| Call features: | Make-whole call at Bunds plus 30 bps; three-month par call
|
| Price talk: | Mid-swaps plus 145 bps to 150 bps
|
| ISIN: | XS2629064267
|
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