Stora Enso has successfully completed the issuance of two tranches of hybrid bonds with a total nominal amount of EUR 1 billion. The proceeds from the issuance will be used for general corporate purposes, including the refinancing of existing debt and upcoming maturities.
The transaction includes two tranches:
- EUR 500 million hybrid bond with a 3-year first call period
- EUR 500 million hybrid bond with a 5.5-year first call period
The bonds are subordinated instruments with no fixed maturity date. They are treated as equity under IFRS and are an important part of Stora Enso's long-term financing strategy, strengthening the company's capital structure and financial flexibility. The first bond is issued at price of 100.00 and bears a fixed interest rate of 5.625% per annum until 17 April 2029, after which the rate will reset periodically based on prevailing market conditions.
The second bond is issued at price of 99.47 and bears a fixed interest rate of 5.875% per annum until 17 October 2031, with subsequent resets on the specified dates.
