SATO Corporation issues a senior unsecured green bond
17 September 2020
SATO Corporation, Stock Exchange Release, 17 September 2020 at 7:10 pm
**SATO Corporation (“SATO”) issues a EUR 350 million senior unsecured green bond under its EMTN programme. This is SATO’s first green bond. **
The bond has been offered to European investors and will be issued on 24 September 2020. The unsecured bond has a maturity of over seven years and will bear an annual fixed coupon of 1.375 per cent. The net cash proceeds will be used for financing and/or refinancing of Eligible Green Assets as per SATO’s Green Finance Framework.
Last spring SATO launched a Green Finance Framework that integrates SATO’s sustainability targets with its financing solutions. The Framework is based on the company’s strategy and its Sustainability Programme published last year. SATO may issue green bonds, green commercial papers and other debt instruments that meet the Framework’s requirements to (re-)finance, for example, energy-efficient buildings, repair investments improving energy efficiency as well as projects relating to renewable energy or waste management.
"Only a few green bonds have been issued in Finland. We are proud that SATO is among the first Finnish companies to issue a green bond. We promote sustainable development through our activities, and sustainability is an essential element in our long-term value creation for investors and other stakeholders", says SATO’s CFO Markku Honkasalo.
”SATO’s first green bond has been very well-received on the market, and an increasing number of investors clearly care about sustainability”, observes Markku Honkasalo
SATO will apply for listing of the bond on the Official List of the Irish Stock Exchange plc trading as Euronext Dublin and for the bond to be admitted to trading on its regulated market. The bond will be rated BBB by Standard & Poor’s, in line with SATO’s long-term issuer rating.
Danske Bank, Handelsbanken, OP Corporate Bank and Swedbank acted as joint lead managers and bookrunners for the transaction.
For more information, please contact:
NASDAQ Helsinki Ltd., Euronext Dublin, main media, www.sato.fi
SATO is one of Finland's leading rental housing providers. SATO aims to offer a comprehensive choice of rental housing and an excellent customer experience. At year-end 2019, SATO owned over 26 000 apartments in Finland's largest growth centres and in St Petersburg.
We promote sustainable development and initiative through our operations and work in open interaction with our stakeholders to generate added value. We operate profitably and with a long-term view. We increase the value of our housing stock through investments, divestments and repairs.
SATO Group's net sales in 2019 were EUR 296 million, operating profit EUR 726 million and profit before taxes EUR 671 million. The value of SATO's investment assets is roughly EUR 4,7 billion.
The information contained in this release shall not constitute an offer to sell or the solicitation of an offer to buy securities of SATO in any jurisdiction. In particular, this release does not constitute an offer to sell, or a solicitation of offers to purchase or subscribe for, securities in the United States. Any securities referred to herein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended, and may not be offered, exercised or sold in the United States or to U.S. persons absent registration or an applicable exemption from registration requirements.