By Marisa Wong
Los Angeles, Nov. 16 – Kinnevik AB announced it issued SEK 2 billion of sustainability-linked bonds in the Nordic bond market.
The dual tranche sustainability-linked bonds comprise a SEK 1.5 billion tranche with a five-year maturity and a SEK 500 million tranche with a seven-year maturity.
The shorter-term bonds bear interest at three-month Stibor plus 70 basis points, and the tranche with the longer tenor carries a coupon of Stibor plus 90 bps.
The final redemption price of the bonds depends on Kinnevik’s ability to meet annual sustainability performance targets (SPT) that the company has set for its sustainability work. If Kinnevik does not achieve an SPT in any given year, the redemption price will increase by 0.075% per SPT and year.
In order to hedge the interest rate risk, Kinnevik has entered into an interest rate swap agreement so it can pay a fixed annual interest rate on the total amount in both tenors.
The bonds are issued under Kinnevik’s medium-term note program and sustainability-linked financing framework published this month.
Proceeds from the bond issue will primarily be used to refinance bonds maturing during 2022.
The investment company is based in Stockholm.
| Issuer: | Kinnevik AB
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| Issue: | Sustainability-linked bonds
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| Amount: | SEK 2 billion
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| Announcement date: | Nov. 16
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| Five-year bonds
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| Amount: | SEK 1.5 billion tranche
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| Maturity: | Five years
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| Coupon: | Stibor plus 70 bps
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| Seven-year bonds
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| Amount: | SEK 500 million
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| Maturity: | Seven years
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| Coupon: | Stibor plus 90 bps
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