Arla has issued its first green bonds to help finance the transition towards a climate-friendly future.
Arla has set an ambitious science-based climate target of reducing CO2e emissions by 30 per cent in 2030 and has an ambition of becoming carbon net zero by 2050. With a strong focus on sustainability across the entire value chain, Arla is exploring all opportunities to reduce its CO2e footprint and improve its green handprint.
Now, investors can support the transition by purchasing green bonds issued by Arla. The SEK 1.5 billion (EUR 148 million) proceeds from Arla’s green bonds will be allocated to green investments within the cooperative.
Arla has successfully issued a floating rate green bond at the Swedish bond market in Swedish kronor on May 7, 2021, at a credit margin of 0,68 per cent.
With asset managers, banks as well as insurance and pension funds in the Nordic countries as primary investors, the bonds were immediately overbooked with banks receiving bids for more than SEK 4 billion (EUR 396 million) before the issuance was closed at the announced SEK 1.5 billion.
The proceeds from the issuance will be used in accordance with Arla’s Sustainable Financing Framework, which is supported by a Second Party Opinion from Sustainalytics. Examples of how the proceeds are allocated include efficient use of biogas, water treatment and recycling, energy optimisation on Arla’s 60 production sites as well as climate checks on farms.