Sweden's Preem kicks off maiden green bond offering of EUR 340m

Swedish petroleum and biofuels company Preem Holding AB said today it has launched a EUR-340-million (USD 356.1m) offering of green bonds, seeking to bankroll investments in renewable refining projects.

Specifically, the largest fuel company in Sweden will use the fresh funds for initiatives such as retrofitting and converting existing fossil production to renewables. Together with cash on hand, the raised proceeds will also go to repay an existing term loan and for green projects, renewable raw materials and assets.

The senior notes offering, initiated under Preem’s green financing framework, is scheduled to be finalised on June 21, 2022. The notes have a coupon of 12% and mature in 2027.

Preem aims to achieve climate-neutral operations with net-zero emissions throughout the value chain by 2035, which is 10 years earlier than initially planned. The major pillars of its strategy are transitioning from fossil crude oil can to renewable raw materials, building carbon capture facilities, replacing natural gas with renewable gas and producing fossil-free hydrogen, as well as cutting sales of fossil fuel products.

(EUR 1.0 = USD 1.047)

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