Ericsson Places €500 mn Green Bond to Boost Sustainability Efforts

Ericsson, the leading telecom equipment maker based in Sweden, has concluded the placement of a €500 million green bond over a 4.5-year term.
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This landmark bond, part of Ericsson’s Euro Medium Term Note Program (EMTN), signifies a pivotal step in the company’s commitment to sustainability and environmental responsibility.

The issuance of this green bond follows a robust road show where Ericsson showcased its business strategy aligned with its Environmental, Social, and Governance (ESG) targets. The reception at the road show underscored market enthusiasm for Ericsson’s approach and its alignment with sustainability objectives.

Carl Mellander, CFO of Ericsson, expressed his satisfaction, stating, “The successful placement of this green bond confirms the market confidence in Ericsson’s long-term competitiveness and our strong sustainability ambitions.”

Carl Mellander highlighted the direct correlation between this bond issuance and the company’s efforts to fully integrate sustainability into its financial operations, including the launch of the Green Financing Framework last year.

Importantly, the proceeds from this bond placement will be dedicated exclusively to investments in energy efficiency. Ericsson aims to channel these funds towards research and development endeavors focused on enhancing energy performance in existing and forthcoming solutions. The company anticipates these efforts will not only bolster operator competitiveness but also enable significant societal climate action through innovative mobile connectivity solutions.

The Green Financing Framework established by Ericsson serves as the cornerstone, enabling the issuance of green bonds and other sustainability-focused financial instruments. This framework strictly directs the allocation of proceeds solely towards investments in energy efficiency and renewable energy sources.

Furthermore, it was crafted in accordance with the 2021 ICMA Green Bond Principles (GBP) and received validation from CICERO Shades of Green, a prestigious global provider specializing in assessments related to green and sustainable financing, now part of S&P Global.

The success of this green bond placement was made possible through collaboration with joint bookrunners including Citi, Credit Agricole CIB, Danske Bank, Deutsche Bank, and SEB. This strategic partnership underscores Ericsson’s commitment to sustainable financing and signifies a significant stride in the company’s journey towards a more sustainable future.

Ericsson’s proactive steps in issuing green bonds not only amplify its presence in the Eurobond market but also reinforce its dedication to leveraging finance as a tool for positive environmental impact and innovation in the telecommunications industry.