Metso preps €300 million inaugural sustainability-linked bond offer

Chicago, Nov. 13 – Metso Corp. (Baa2/BBB) is preparing to issue an inaugural sustainability-linked bond offering, according to a market source.

Investor calls started Monday for the €300 million senior bond issue with a seven-year tenor.

The issue size is marked as “no grow.”

The sustainability targets will be linked to a reduction of scope 1 and scope 2 emissions by 63% by year-end 2027 versus a 2022 base year. Second, there will be a target linked to 30% of direct suppliers by spend covering purchased goods and services having science-based targets by 2025. Each target will be tested independently. For the first target, a 20 basis points step-up will apply for each full interest period following the testing date of Dec. 31, 2027. A 10 bps per year step-up will apply following the testing date of Dec. 31, 2025 if the target is not met.

BNP Paribas, Citigroup, Nordea and OP Corporate Bank are joint bookrunners.

Nordea will be the sustainability structuring adviser.

Distribution will be through Regulation S.

The a Helsinki, Finland-based issuer provides services for aggregates production, mining and metals refining.

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