The sustainability-linked bond marks a first not only for Odfjell, but also for the international shipping industry, and for the Nordic region across all industries, the company said.
According to the stock market notice, DNB Markets, Nordea and SEB acted as Joint Lead Managers and Sustainability Structuring Advisors in the transaction.
With this sustainability-linked bond, we prove our strong commitment to reduce emissions and build a more sustainable shipping industry. Odfjell has for many years worked actively to drive change and reduce our carbon footprint, and we are now pleased to see that investors and banks support us through this sustainability-linked bond,
...said CEO Kristian Mørch.
See also: Financing the clean energy transition
The issue size was set to NOK 850 million with a maturity date in January 2025. Proceeds from the bond issue will be used to refinance existing bonds and for general corporate purposes. The bond is intended to be listed on Oslo Børs and Euronext ESG Bonds.
The bond issue is the first to be issued under a newly established Sustainability-Linked Finance framework, and is linked to Odfjell’s fleet transition plan and ambition to reduce the carbon intensity of its controlled fleet by 50% by 2030 compared to 2008 level.
Since 2008, Odfjell has reduced its carbon intensity by 30%, while it has recently launched climate targets that go beyond IMO’s targets.