Loomis issues SEK 1 billion sustainability‑linked bonds

Loomis AB announced the issuance of SEK 1 billion in sustainability‑linked bonds, with proceeds earmarked for general corporate purposes and debt refinancing. The bonds are tied to a carbon‑reduction performance target, and the company also conducted a partial buy‑back of existing notes [1].

Key takeaways

• The issue totals SEK 1 billion and is linked to a carbon‑emission reduction goal [1].
• Reported maturities differ: one source cites a four‑year term ending May 2027, another cites a five‑year term [1][2].
• Interest structures vary: SEK 650 million at 3‑month Stibor + 1.95 pct, SEK 350 million at a fixed 4.923 % coupon, while another source describes a floating rate of 3‑month Stibor + 0.95 % for the whole issue [1][2].
• Danske Bank and Nordea acted as joint bookrunners for the transaction [1][2].
• Loomis repurchased SEK 174 million of older bonds at 100.095 % of nominal value [1].

Issue details and differing reports

A press release dated 12 May 2023 states that Loomis issued SEK 1 billion of sustainability‑linked bonds with a four‑year maturity, maturing on 19 May 2027. The tranche is split between SEK 650 million of floating‑rate notes (3‑month Stibor + 1.95 percentage points) and SEK 350 million of fixed‑rate notes paying a 4.923 % coupon. Proceeds are to be used for general corporate purposes and to refinance existing loans, and the bonds will be listed on the Nasdaq Stockholm Sustainable Bond List [1].

In contrast, a separate release (dated 12 May 2023 but referencing a 2026 programme) describes the same SEK 1 billion issue as having a five‑year maturity and a uniform floating rate of 3‑month Stibor + 0.95 %. This issuance is said to be under Loomis’ EUR 2 billion EMTN programme dated 29 May 2026, with proceeds likewise directed to general corporate purposes and debt refinancing. The sustainability link is tied to a target of cutting absolute carbon emissions by 48 % by 2030 relative to 2019 levels [2][3][4].

Both accounts agree that the bonds were issued under Loomis’ Sustainability‑Linked Financing Framework, supported by a second‑party opinion from Sustainalytics, and that Danske Bank and Nordea served as joint bookrunners. Additionally, each source notes that Loomis offered bondholders the chance to participate in partial buy‑backs of outstanding bonds maturing in May 2027, with total buy‑back volumes of SEK 378 million (FRN) and SEK 266 million (fixed) reported in later updates [2][3][4].

Why it matters

The issuance demonstrates Loomis’ commitment to integrating environmental performance targets into its financing strategy, a trend that can attract ESG‑focused investors and potentially lower funding costs if targets are met. However, the conflicting details on maturity length, interest rate structure, and the specific carbon‑reduction goal highlight the importance of cross‑checking corporate disclosures. Investors will watch Loomis’ emissions data to assess whether the linked performance targets are achieved, which could affect the bond’s coupon adjustments under the sustainability‑linked framework. Future updates from Loomis should clarify the exact terms and confirm the impact of the buy‑back program on its overall debt profile.