Ericsson issues green bond of 500 mn euros

Swedish telecom gear maker Ericsson Thursday said it has successfully placed a green Euro-dominated 500 million 4.5-year bond whose proceeds will be allocated to investments in energy efficiency.

The bond has been issued under Ericsson’s Euro Medium Term Note Program (EMTN), as per a statement by the vendor.

“The successful placement of this green bond confirms the market confidence in Ericsson’s long-term competitiveness and in our strong sustainability ambitions. Issuing the bond is a direct consequence of our work to fully integrate sustainability into our finance operations, including last year’s launch of our Green Financing Framework,” said Carl Mellander, Ericsson’s CFO.

Mellander added that the proceeds raised will support Ericsson’s R&D investments in enhanced energy performance in both existing and future solutions. “This will strengthen operators’ competitiveness and enable further societal climate action through solutions made possible by mobile connectivity,” he said.

Ericsson’s green framework was developed in accordance with the 2021 ICMA Green Bond Principles (GBP). CICERO Shades of Green, a global provider of assessments related to green and sustainable financing, and part of S&P Global since December 2022, acted as second party opinion provider. Citi, Credit Agricole CIB, Danske Bank, Deutsche Bank and SEB were the joint book runners, the statement added.