TAGS: Sustainability / Natural Coatings
Clariant successfully prices its first green bond. The CHF 175 million green bond has a coupon of 2.717% and a 2027 maturity date.
An amount equal to the net proceeds from the bond issuance will be allocated to the financing and/or refinancing of investments in Eligible Assets as established by Clariant within its Green Financing Framework. Eligible Assets promote the transition towards a low-carbon and environmentally sustainable society, as determined by Clariant.
Proceeds Allocation to Eligible Asset Categories
Proceeds will be allocated to capital expenditures, acquisitions, joint ventures and research and development within the Eligible Asset Categories of this Framework (circular economy adopted products, production technologies and processes and/or certified eco-efficient products, renewable energy and energy efficiency, pollution prevention and control).
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The green bond issuance under our Green Financing Framework exactly fits our focus on sustainability as part of our purpose-led growth strategy,” said Bill Collins, chief financial officer of Clariant.
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We view this green financing option as a key contribution to sustainability across the Group, allowing sustainability driven bond investors to participate in the sustainability leadership of our company. Its Swiss franc denomination also underlines our commitment to the Swiss market and fits perfectly in our maturity profile,” added Collins.
The transaction emphasizes Clariant’s sustainability leadership and represents clear progress in the implementation of its 2030 roadmap to achieve its science-based climate targets. The financing and/or refinancing of Eligible Asset with the green bond proceeds will contribute to achieving our ambitious targets.
Targets 40% Reduction in Greenhouse Gas Emissions
Between 2019 and 2030, Clariant targets a 40% absolute reduction in scope 1 and 2 greenhouse gas emissions and a 14% absolute reduction in scope 3 greenhouse gas emissions from purchased goods and services. These science-based targets are accompanied by intensity reduction targets for the key environmental parameters in its operations.
ISS ESG gives a second-party opinion confirming the alignment of the framework with Green Bond Principles and Green Loan Principles and the sustainability quality of the eligibility criteria. S&P Global Ratings has granted Clariant’s Green Bond a BBB- rating.
UBS Investment Bank and Skandinaviska Enskilda Banken (SEB) acted as joint lead managers for this green bond issue. The application for admission to trading on the SIX Swiss Exchange will be submitted.
The Green Bond is expected to settle on 26 September 2022.
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Source: Clariant