Stora Enso issues EUR 1 billion hybrid bonds

Stora Enso announced the successful issuance of hybrid bonds for a total nominal amount of EUR 1 billion, reinforcing its long-term financing strategy and capital structure. The proceeds from the transaction will be used for general corporate purposes, including the refinancing of existing debt and upcoming maturities.

The issuance consists of two tranches: a EUR 500 million hybrid bond with a three-year first call period, and a EUR 500 million hybrid bond with a 5.5-year first call period. The instruments are subordinated and have no fixed maturity date. Under IFRS, they are treated as equity and play a key role in strengthening the company’s financial flexibility.

The first bond was issued at a price of 100.00 and carries a fixed annual interest rate of 5.625% until 17 April 2029, after which the rate will be periodically reset in line with market conditions. The second bond was issued at a price of 99.47 with a fixed annual interest rate of 5.875% until 17 October 2031, followed by subsequent rate resets. The bonds are expected to be listed on the Global Exchange Market of Euronext Dublin.

“We are pleased with the strong investor demand for our hybrid bond issuance, which enhances Stora Enso’s financial flexibility and supports our long-term strategy. The positive market response reflects confidence in our financial strength and commitment to a solid investment-grade rating. The attractively priced bonds further strengthen our capital structure, and we are very satisfied with the outcome in terms of size, pricing, and investor quality,” said Niclas Rosenlew, Chief Financial Officer of Stora Enso.