Stockholm / SE. (lg) Lantmännen Group is updating its Green Bond Framework that enables financing of the transition to an even more sustainable agriculture sector and food industry. The Group has a central role in meeting global challenges such as climate change and an increased demand for resources for a growing population. To continue to finance initiatives with clear sustainability benefits, the Green Bond Framework has been updated and new green bonds, with a total value of SEK 2 billion, has been issued.
Claes Johansson, Head of Sustainability: «We are driving the development towards the farming of the future and see continued potential to accelerate the climate transition. A lot of technology and knowledge is in place, what is missing are resources for investments in the parts of the value chain that are most important for the transition. Strengthened profitability and targeted investments play a major role. That is how we can meet an increased demand from the outside world and the market for responsibly produced food, bioenergy and bio-based materials – today and in the future.»
The updated Green Bond Framework has been adapted to the latest market standards and aims to increase transparency regarding what Lantmännen intends to finance with its green bonds. The framework enables financing of Lantmännen’s many sustainability initiatives, such as plant breeding for climate adaptation, sustainable proteins, fossil-free grain drying facilities and much more. At the same time, a new project category is being introduced in the framework, Clean Transportation, to promote fossil-free vehicles.
Group-CFO Michael Sigsfors: «By issuing green bonds, we can get more actors on board on this important climate adaptation and transition journey that Lantmännen is on. The fact that there is such an extensive interest in contributing to the financing of our sustainability work is very positive.»
The new green bonds were issued on March 14, and the outcome was above expectations: the order book grew rapidly to SEK 4.7 billion. A transaction was made for a volume of SEK 2 billion divided on a maturity of 3 and 5 years. Leading banks in the issue were Danske Bank and Nordea.
