NKT to finance growth aims with new green bonds
![Photo: NKT / PR](https://photos.watchmedier.dk/watchmedier/resize:fill:3840:0:0/plain/https://photos.watchmedier.dk/Images/article14329089.ece/ALTERNATES/schema-16_9/doc7mez11p4kis1jzaotfy1.jpg)
Monday, cable manufacturer NKT announces plans to issue a new tranche of euro-dominated green hybrid securities with a targeted scope of at least EUR 100m, ”subject to market conditions”.
Furthermore, the Danish company also reveals a purchase offer for its outstanding hybrid securities worth EUR 150m issued in 2018.
”NKT enables the green transition of societies and connect a greener world with our power cable solutions. We have demonstrated strong growth in recent years and we plan to continue growing in line with our medium-term ambitions. Since sustainability is a key strategic priority for NKT, it is a natural step to fund these ambitions with capital founded on a green finance framework,” writes NKT Chief Financial Officer Line Andrea Fandrup in a statement.
The final dimension and pricing of the bonds will be established when the book-building process is complete.
If the deal goes through as planned, the securities will be used to refinance outstanding bonds minted in 2018, with yields at 5.375%, that will be redeemed on Sept. 12, 2022.
In connection with unveiling the bond issuance, NKT also presents the launch of its Green Finance Framework, developed alongside Nordic financial groups Danske Bank, Nordea and Nykredit.
Fixed income rater CICERO Shades of Green has stamped NKT’s new hybrid bonds as Medium Green ”with a governance score of excellent”.
”The proceeds from the intended new issuance will be applied for financing or refinancing of tangible assets and operational expenditures that have been evaluated to have distinct sustainable benefits in accordance with the Green Finance Framework.”
NKT targets double revenue in business unit
NKT maintains financial guidance for 2022
NKT wins offshore wind turbine cable contract worth up to EUR 300m