Norsk Hydro: Successful placement of inaugural European Green Bond

Rhea-AI Summary

Norsk Hydro (NHYDY) has successfully issued its first European Green Bond (EuGB) worth EUR 500 million. The senior unsecured bond has an 8-year tenor and offers a 3.75% fixed annual coupon with a 3.779% reoffer yield. The company becomes the first Nordic issuer of an EuGB, demonstrating its commitment to sustainable finance. The proceeds will be allocated to eligible activities outlined in Hydro's European Green Bond Factsheet, supporting the company's strategy to pioneer green aluminum transition powered by renewable energy. The bonds will be listed on the Irish Stock Exchange (Euronext Dublin), with several major financial institutions serving as Joint Lead Managers and Citi acting as the Green Structuring Bank.

Positive

• First Nordic issuer of European Green Bond, positioning the company as a sustainability leader
• Strong investor interest indicating market confidence in Hydro's green strategy
• Successful raising of EUR 500 million with competitive 3.75% coupon rate
• Strengthens financial position to support green aluminum transition initiatives

Negative

• Additional debt obligation with 3.75% annual interest payment burden
• 8-year commitment period may limit financial flexibility

Norsk Hydro ASA has successfully issued EUR 500 million of senior unsecured European Green Bonds (EuGB) under its Euro Medium Term Note (EMTN) Programme. The new bond has a tenor of 8 years and a fixed annual coupon of 3.75 percent (3.779 percent reoffer yield).

"We are delighted to have completed such a successful placement and issued our inaugural EuGB. The strong interest confirms that Hydro is considered an attractive investment for bond investors supporting our strategy of pioneering the green aluminium transition, powered by renewable energy. We are pleased to have achieved highly competitive terms," says Chief Financial Officer, Trond Olaf Christophersen.

An amount equivalent to the proceeds from the bond issue will be allocated to eligible activities as detailed in Hydro’s European Green Bond Factsheet. The transaction also markets Hydro as the first issuer of an EuGB from the Nordic region, highlighting the company’s commitment to the development of the sustainable finance markets.

The bonds will be listed on the Irish Stock Exchange (Euronext Dublin).

BNP Paribas, Citi, Crédit Agricole Corporate and Investment Bank, DNB Carnegie, Goldman Sachs Bank Europe SE and Nordea are Joint Lead Managers for the transaction. Citi acted as the Green Structuring Bank.

Investor contact
Elitsa Blessi
elitsa.blessi@hydro.com
+47 91775472

Media contact
Anders Vindegg
+47 93864271
Anders.Vindegg@hydro.com

Group Treasury and Tax
Nesrin Taraf
+47 46862952
Nesrin.Taraf@hydro.com

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

FAQ

What is the size and interest rate of Norsk Hydro's (NHYDY) new European Green Bond?

Norsk Hydro's European Green Bond is EUR 500 million with a fixed annual coupon rate of 3.75% and a reoffer yield of 3.779%.

How long is the term of NHYDY's European Green Bond?

The European Green Bond has a tenor (term) of 8 years.

What will Norsk Hydro use the European Green Bond proceeds for?

The proceeds will be allocated to eligible activities detailed in Hydro's European Green Bond Factsheet, supporting the company's green aluminum transition strategy.

Which stock exchange will NHYDY's European Green Bond be listed on?

The bonds will be listed on the Irish Stock Exchange (Euronext Dublin).

Why is Norsk Hydro's European Green Bond issuance significant?

It marks Hydro as the first issuer of a European Green Bond from the Nordic region, demonstrating leadership in sustainable finance.