Epiroc issues green bonds to help drive forward its sustainable and electric future

To finance sustainable investments, expenditures, and R&D, Swedish mining equipment and technology major Epiroc yesterday issued SEK2 billion in green bonds (about €187 million) with considerable investor interest and an order book exceeding SEK3 billion. The tenor is five years, and the bond has two tranches, one fixed and one floating.

“Epiroc plays a vital role in the transition to a low-carbon society,” says Håkan Folin, Epiroc’s Chief Financial Officer. “This new financing will support us as we continue our sustainability journey and invest in innovative products and technologies that make our customers’ and our own operations more sustainable.”

The fixed tranche of SEK1.5 billion has a coupon of 4.155% and the floating tranche of SEK0.5 billion was priced at 3M STIBOR plus 1.20%. The bond is issued under Epiroc’s Euro Medium Term Note (EMTN) program, with reference to Epiroc’s recently established Green Bond Framework, which is available on Epiroc’s Debt page. The bonds will be listed on Euronext Dublin. SEB and Nordea acted as Joint Lead Managers for the transaction and SEB as Advisor for the Green Bond Framework.

The proceeds can be used to finance projects in the following three categories. The Green Bond Framework includes additional examples of how the proceeds may be used.

  • Products and production technologies. Examples of these may include battery-electric machines, diesel-to-battery conversion technology, Batteries as a Service product offering, automation and digitalisation solutions that increase efficiency and lower emissions, design for recycling, circularity and reuse of material, and environmentally certified raw materials such as fossil-free steel.
  • Energy efficiency. This may for example include developing design solutions and data management to optimize customers’ energy efficiency and installing solar panels at Epiroc’s production facilities.
  • Sustainable water and wastewater management. This may include developing efficient water-well drilling equipment and reducing wastewater in operations.

Epiroc’s ambitious sustainability goals for 2030 include halving its CO2e emissions. In 2021, Epiroc received validation from the Science Based Targets initiative (SBTi) for the targets to halve its CO2e emissions in own operations as well as from the use of sold products. The SBTi validated Epiroc’s climate targets as being in line with keeping global warming at a maximum 1.5°C, consistent with the latest climate science and the goal of the Paris Climate Agreement.