Ericsson issues first EUR500 million green bond
LONDON, December 20, 2023
Ericsson has successfully placed a green Euro-denominated 500 million 4.5-year bond. The bond was issued under Ericsson's Euro Medium Term Note Program (EMTN).
The issue follows a well-attended road show, where Ericsson presented its business strategy and how it is linked to the Company’s ESG targets.
With this transaction, Ericsson extends its footprint in the Eurobond market, one of the world's largest corporate bond markets, and the proceeds will be exclusively allocated to investments in energy efficiency.
Ericsson’s CFO Carl Mellander said the successful placement of this green bond confirms the market confidence in its long-term competitiveness and in strong sustainability ambitions.
"Issuing the bond is a direct consequence of our work to fully integrate sustainability into our finance operations, including last year’s launch of our Green Financing Framework. The proceeds raised will support R&D investments in enhanced energy performance in both existing and future solutions," noted Mellander.
"This will strengthen operators’ competitiveness and enable further societal climate action through solutions made possible by mobile connectivity," he added.
Ericsson’s Green Financing Framework enables the Company to issue green bonds and other green financing instruments. The proceeds will be exclusively allocated to investments in energy efficiency and renewable energy. The framework was developed in accordance with the 2021 ICMA Green Bond Principles (GBP).
CICERO Shades of Green, a leading global provider of assessments related to green and sustainable financing, and part of S&P Global since December 2022, acted as second party opinion provider.
Joint bookrunners were Citi, Credit Agricole CIB, Danske Bank, Deutsche Bank and SEB.
