Mytilineos sets 2.25% coupon on EUR-500m maiden green bond

Greek industrial and energy group Mytilineos SA (FRA:MYH) has set a 2.25% coupon on its inaugural green bond of EUR 500 million (USD 601.5m), it said on Thursday.

The senior unsecured notes will have a 5.5-year tenor and will mature in 2026. According to a report by local newspaper Kathimerini, the bookbuilding process for the offering was four times oversubscribed, with commitments reaching EUR 1.8 billion in total.

On announcing the deal last week, Mytilineos said it will allocate the proceeds to repay existing debt and cover general corporate needs and transaction-related costs and fees. Some of the fresh capital will be earmarked for financing or refinancing, fully or partly, projects in line with its green bond framework.

The Greek group has pledged to achieve net zero emissions at its development and construction businesses by 2030 and cut by 50% specific emissions at its power and gas units by the same year. In the renewables field, it aims to deploy over 2.5 GW of projects, at home and abroad, the latest version of its green bond framework shows.

BNP Paribas, Citigroup, and HSBC have been hired to act as global coordinators and joint bookrunners of the transaction.

(EUR 1.0 = USD 1.203)

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