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Stora Enso Successfully Issues EUR 1 Billion Hybrid Bonds

In a notable achievement, Stora Enso, a global leader in renewable products and solutions, has successfully launched two tranches of hybrid bonds totaling EUR 1 billion. This financial maneuver is a significant milestone for the company, aimed at bolstering its capital base and enhancing its financial stability.

The issuance comprises two distinct tranches: the first is a EUR 500 million hybrid bond featuring a three-year first call period, while the second consists of another EUR 500 million bond with a call period of 5.5 years. These bonds serve as subordinated instruments without a fixed maturity date, allowing them to be classified as equity under IFRS standards. This classification is strategic, as it aligns with Stora Enso’s long-term financing objectives and enhances its capital structure.

The issuance proceeds will be allocated for various corporate purposes, including refinancing existing debts and addressing upcoming maturities. CFO Niclas Rosenlew expressed satisfaction at the robust demand from investors for this offering, noting that it not only improves Stora Enso's financial flexibility but also reinforces the company’s commitment to maintaining a solid investment-grade rating. The positive reception in the market reflects the trust that investors place in Stora Enso's financial health and long-term prospects.

Below are the key details of the bonds:

• - First Tranche: EUR 500 million at a fixed annual interest rate of 5.625%, with the rate subject to resets from April 17, 2029.
• - Second Tranche: EUR 500 million at a fixed annual interest rate of 5.875%, with subsequent resets starting October 17, 2031.

Both bonds are set to be listed on the Global Exchange Market of Euronext Dublin, further improving their visibility and accessibility in the financial market.

Stora Enso is committed to leading the way in renewable materials and packaging solutions, with a mission to replace non-renewable materials with sustainable alternatives. The issuance of hybrid bonds is a pivotal strategy to ensure that the company can continue investing in innovative solutions that promote a circular bioeconomy. Currently, Stora Enso employs around 19,000 people worldwide and reported sales of EUR 9.3 billion in 2025, showcasing its solid footing in the industry.

With this new capital influx, Stora Enso is poised to strengthen its market position and accelerate its mission towards sustainability. As companies globally shift focus towards environmentally responsible practices, Stora Enso's strategic moves will undoubtedly play a crucial role in navigating the evolving economic landscape.

In conclusion, the success of this bond issuance is not merely financial; it represents Stora Enso's relentless pursuit of leadership in renewable materials and a proactive stance in addressing the challenges of the modern market. Investors can look forward to observing how this funding will influence Stora Enso's future projects and operational capabilities as it further commits to sustainability and innovation.