Neste issues €600m green bond

Neste Rotterdam Refinery

Neste Corporation, a Finnish company that produces renewable fuels and biomaterials, has issued a €600m green bond with a 7.5-year maturity and a fixed coupon of 3.875%.

The bond was oversubscribed by more than five times, with participation from institutional investors across Europe.

“It was very encouraging to see the strong investor support for Neste on our third green bond issue of the year. The orderbook reached over 5 times oversubscribed, with participation from institutional investors across Europe. The successful outcome serves as a vindication of our strategy, transformation, and vision to become a global leader in renewable and circular solutions,” said Martti Ala-Härkönen, CFO, Neste.

Earlier this year, Neste issued €500m green bond with 6-year maturity and a €500m green bond with 10-year maturity under its Euro Medium Term Note (EMTN) programme established on March 6th 2023, and will pay a fixed coupon of 3.875% and 4.25%, respectively.

The proceeds from the bond will be used to finance eligible projects and assets as outlined in Neste’s Green Finance Framework. These projects fall under four categories: renewable energy, energy efficiency, sustainable transportation, and circular economy.

The bond will be listed on Euronext Dublin.

Neste has issued the bond under its EMTN program, established in March 2023. This €2.5bn program aligns with Neste’s Green Finance Framework, providing a structured approach to financing sustainable initiatives.

Barclays Bank Ireland PLC, Citigroup Global Markets Limited, Credit Agricole Corporate and Investment Bank, OP Corporate Bank plc, and Skandinaviska Enskilda Banken AB (publ) acted as joint lead managers for the transaction.