Sustainability-linked senior note successfully placed
Hamburg, 26 March 2021
- Bond volume in the amount of EUR 300 million placed
- Coupon of 2.5% achieved
- Proceeds to be used for early redemption of existing EUR bond
Hapag-Lloyd AG has successfully placed on the market its first sustainability-linked corporate senior note with a volume of EUR 300 million. The senior note has a coupon of 2.5% and a maturity of 7 years. The emission price was 100%. The proceeds of this new note issuance will be used to redeem early and in full the existing 5.125% EUR bond (ISIN XS1645113322 and ISIN XS1645114056) in the amount of EUR 300 million and maturing in 2024. The existing note is expected to be redeemed on 7 April 2021 at the fixed price of 102.563%.
“With the successful placement of our sustainability-linked note, we have reached another milestone in our green financing activities. At the same time, we are very pleased with the demand and the confidence of our investors. Now we need to keep our own ambitious sustainability targets for CO2 intensity firmly in sight and achieve them step-by-step,” says Mark Frese, Chief Financial Officer of Hapag-Lloyd AG.
The sustainability-linked senior note is associated with a clearly defined sustainability target: By 2030, the CO2 intensity of Hapag-Lloyd’s own fleet is to be reduced by 60% compared with 2008, the reference year of the International Maritime Organization (IMO). Improvements in the CO2 intensity will be measured and annually disclosed according to the so-called Average Efficiency Ratio (AER) indicator, which was 11.68 in 2008 and is expected to fall to 4.67 by 2030.
With a fleet of 237 modern container ships and a total transport capacity of 1.7 million TEU, Hapag-Lloyd is one of the world’s leading liner shipping companies. The Company has around 13,100 employees and 395 offices in 129 countries. Hapag-Lloyd has a container capacity of approximately 2.7 million TEU – including one of the largest and most modern fleets of reefer containers. A total of 122 liner services worldwide ensure fast and reliable connections between more than 600 ports on all the continents. Hapag-Lloyd is one of the leading operators in the Transatlantic, Middle East, Latin America and Intra-America trades.
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The securities are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the European Economic Area (“EEA”) and the United Kingdom. For these purposes, a “Retail Investor” means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of MiFID II; (ii) a customer within the meaning of Directive (EU) 2016/97, where that customer would not qualify as a professional client as defined in point (10) of article 4(1) of MiFID II; or (iii) not a Qualified Investor as defined in Regulation (EU) 2017/1129 (the “Prospectus Regulation”). Consequently, no key information document required by Regulation (EU) 1286/2014 (the “PRIIPs Regulation”) for offering or selling the securities or otherwise making them available to retail investors in the EEA has been prepared and therefore offering or selling the bonds or otherwise making them available to any retail investor in the EEA and the United Kingdom may be unlawful under the PRIIPs Regulation. In the United Kingdom, MiFID II, the Prospectus Regulation and PRIIPs Regulation form part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (“EUWA”).
This announcement contains forward-looking statements, which do not represent facts and are characterized by the words “expect”, “believe”, “estimate”, “intend”, “aim”, “assume” or similar expressions. Such statements express the intentions, opinions or current expectations and assumptions of the Hapag-Lloyd group and are based on current plans, estimates and forecasts which the Hapag- Lloyd group has made to the best of its knowledge, but which do not claim to be correct in the future. Forward-looking statements are subject to risks and uncertainties that are difficult to predict and usually cannot be influenced by the Hapag-Lloyd group. Actual events or developments may differ materially from those contained in or expressed by such forward-looking statements.