London Stock Exchange welcomes Fingrid plc to celebrate its inaugural Green Bond listing
London Stock Exchange today welcomed Fingrid PLC to mark the listing of its inaugural Green Bond. This listing represents the first green bond issued by a Finnish corporate.
Fingrid is responsible for the electricity transmission in the high-voltage transmission system in Finland. Fingrid transmits in its own network approximately 78% of all electricity transmitted in Finland. Major power plants, industrial plants and regional electricity distribution networks are connected to the network. Fingrid is a reliable and responsible energy-industry professional characterised by the ability to co-operate and the desire to serve its customers and the whole of society in an impartial manner.
Fingrid has established a Green Bond Framework as part of its financing strategy. The framework has been validated by a third party opinion provider CICERO. Green bonds are issued under the company's Euro Medium Term Note programme and are listed on the London Stock Exchange as the company's other bonds. Under the Green Bond Framework the company finances investments which connect renewable energy, reduce electricity transmission losses or improve energy efficiency via smart grids.
Jan Montell, CFO, Senior Vice President said:
"Fingrid's mission is to secure reliable electricity for our customers and the society. We shape the clean, market oriented power system of the future. As also sustainability is one of our core corporate values, it is natural for us to participate in the green bond market to finance our long term investments which have positive environmental effects"
Fingrid issued on the 23rd November a 10 year, EUR 100 million green bond with a coupon interest of 1.125 per cent. The transaction arrangers and bookrunner banks were SEB and ING. SEB also acted as the sole green structuring advisor. Legal advisors were Linklaters LLP and DLA Piper Finland. The transaction raised broad international interest and expanded the company's debt investor base. The bond accounts for approximately 9 per cent of the company's total debt.