Loomis Introduces SEK 1,000 Million in Sustainable Bonds to Boost Corporate Financing
Loomis Launches SEK 1,000 Million Sustainability-Linked Bonds
In a significant move towards sustainability and corporate financing, Loomis AB has announced the issuance of SEK 1,000 million in sustainability-linked bonds. These bonds have a maturity period of five years and a floating interest rate, showcasing the company’s commitment to integrating sustainability into its financial operations.
The newly issued bonds come with an annual interest rate of 3m Stibor + 0.95%, representing a strategic step under Loomis' broader EUR 2 billion EMTN programme established on May 29, 2026. According to Johan Wilsby, the Chief Financial Officer at Loomis, the issuance encountered a highly favorable market response amid a landscape marked by geopolitical uncertainty. The order book for the bonds exceeded SEK 2.9 billion, illustrating strong investor interest in sustainable financial products.
Supporting Sustainability Goals
The issuance aligns seamlessly with Loomis' Sustainability-Linked Financing Framework, which emphasizes the company’s dedication to sustainability initiatives. Notably, these bonds aim to achieve a target of reducing Loomis' absolute carbon emissions by 48% by the year 2030 compared to 2019 levels. This commitment is a part of Loomis' broader strategy to embed sustainable practices across its operations.
By linking their bond issuance to tangible environmental goals, Loomis not only strengthens its sustainability commitments but also appealed to a growing demographic of socially conscious investors looking for environmentally responsible investments.
Market Listing and Buyback Offers
As part of this financial maneuver, the bonds will be listed on the regulated market of Euronext Dublin, ensuring transparency and accessibility for investors. Moreover, Loomis has offered existing bondholders the opportunity to take part in partial buybacks of its outstanding bonds scheduled to mature in May 2027. This move is strategically aimed at managing debt more effectively and maintaining liquidity for current investments.
The completed buybacks, amounting to a nominal value of SEK 378 million in Floating Rate Notes (FRN) and SEK 266 million in Fixed, demonstrate Loomis' proactive approach to optimizing its financial structure.
Conclusion
By issuing SEK 1,000 million in sustainability-linked bonds, Loomis AB is setting a precedent in the corporate landscape. This initiative showcases the company's ability to entice investors through sustainability-focused financing options while making significant strides towards its environmental goals. The successful reception of the bonds in a volatile market not only highlights Loomis’ strong market position but also reinforces the notion that sustainability is a critical consideration for future investments. Loomis continues to demonstrate how financial strategies can be aligned with environmental integrity, paving the way for a more sustainable future in business finance.