Neste’s €500 Million Green Bond Issue

Castrén & Snellman advised Neste Corporation on the deal.

Neste Corporation issued a EUR 500 million green bond. The 7-year bond carries a coupon of 0.75 per cent. The bond offering was allocated to approximately 120 investors.

Neste Corporation will apply for the listing of the bond on the official list of sustainable bonds of Nasdaq Helsinki Ltd. The bond represents the first issuance under the newly established Green Finance Framework.

The proceeds from the issue will be used in accordance with the Neste Corporation’s Green Finance Framework to for example investments into the development, operations, maintenance and expansion of the company’s renewable and circular solutions with the objective to mitigate climate change globally by reducing greenhouse gas emissions. 

Barclays Bank Ireland PLC, Citigroup Global Markets Limited and Nordea Bank Abp acted as joint lead managers for the transaction and Nordea Bank Abp acted as Green Structuring Advisor.

Neste creates solutions for combating climate change and accelerating a shift to a circular economy. They refine waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. It’s the world’s leading producer of renewable diesel and sustainable aviation fuel, developing chemical recycling to combat the plastic waste challenge.

The Castrén & Snellman team included Tero Tuomisto (Picture), Niko Johansson and Valter Olkkonen.

Involved fees earner: Niko Johansson – Castrén & Snellman; Valter Olkkonen – Castrén & Snellman; Tero Tuomisto – Castrén & Snellman;

Law Firms: Castrén & Snellman;

Clients: Neste;

Author: Federica Tiefenthaler