S&P rates Smurfit bond BBB-

S&P said it gave BBB- ratings to Smurfit Kappa Treasury Unlimited Co. and its planned two tranches of €500 million senior unsecured green notes, one maturing in eight years and the other in 12 years. The issuer is a financing subsidiary of Smurfit Kappa Group plc.

The proceeds will be used to finance or refinance a portfolio of eligible green projects in accordance with the green finance framework.

“We anticipate the company will use its excess cash to redeem its more-expensive existing €500 million senior unsecured notes due in 2024 and to finance the recent acquisition of the Verzuolo mill. In our view, the transaction is leverage-neutral and offers interest cost savings,” S&P said in a press release.

The outlook is stable.

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