Clariant Places Green Bond for $178 Million

Clariant successfully priced its first green bond. The CHF 175 million ($178 million) green bond has a coupon of 2.717 % and a 2027 maturity date.

“The green bond issuance under our Green Financing Framework exactly fits our focus on sustainability as part of our purpose-led growth strategy. We view this green financing option as a key contribution to sustainability across the Group, allowing sustainability driven bond investors to participate in the sustainability leadership of our company. Its Swiss franc denomination also underlines our commitment to the Swiss market and fits perfectly in our maturity profile,” said Bill Collins, CFO of Clariant.

An amount equal to the net proceeds from the bond issuance will be allocated to the financing and/or refinancing of investments in eligible assets as established by Clariant within its Green Financing Framework. Eligible assets promote the transition towards a low-carbon and environmentally sustainable society, as determined by Clariant.

Proceeds will be allocated to capital expenditures, acquisitions, joint ventures and research and development within the eligible asset categories of this framework (circular economy adopted products, production technologies and processes and/or certified eco-efficient products, renewable energy and energy efficiency, pollution prevention and control).

This transaction emphasizes Clariant’s sustainability leadership and represents clear progress in the implementation of its 2030 roadmap to achieve its science-based climate targets. Between 2019 and 2030, Clariant targets a 40% absolute reduction in scope 1 and 2 greenhouse gas emissions and a 14% absolute reduction in scope 3 greenhouse gas emissions from purchased goods and services. These science-based targets are accompanied by intensity reduction targets for the key environmental parameters in its operations.