Ericsson has successfully placed a green Euro-denominated 500 million 4.5-year bond. The bond was issued under Ericsson's Euro Medium Term Note Program (EMTN) and follows follows a road show, where Ericsson presented its business strategy and how it is linked to the Company’s ESG targets.
With this transaction, Ericsson has extended its footprint in the Eurobond market, one of the world's largest corporate bond markets, and the proceeds will be exclusively allocated to investments in energy efficiency.
“The successful placement of this green bond confirms the market confidence in Ericsson’s long-term competitiveness and in our strong sustainability ambitions. Issuing the bond is a direct consequence of our work to fully integrate sustainability into our finance operations, including last year’s launch of our Green Financing Framework,” said Carl Mellander, Ericsson’s CFO.
“The proceeds raised will support R&D investments in enhanced energy performance in both existing and future solutions. This will strengthen operators’ competitiveness and enable further societal climate action through solutions made possible by mobile connectivity”.
Ericsson’s Green Financing Framework enables the Company to issue green bonds and other green financing instruments.
The framework was developed in accordance with the 2021 ICMA Green Bond Principles (GBP). CICERO Shades of Green, a leading global provider of assessments related to green and sustainable financing, and part of S&P Global since December 2022, acted as second party opinion provider.
Joint bookrunners were Citi, Credit Agricole CIB, Danske Bank, Deutsche Bank and SEB.
