Klabin is the world’s first company to link its bond issues to a biodiversity target

Gabriela Woge, Corporate Finance Officer at Klabin, at the awards ceremony on October 5 in São Paulo
 

São Paulo, October 7, 2022 – Klabin, Brazil’s largest producer and exporter of packaging paper and sustainable paper packaging solutions, was the big winner in the “Debt” category of the Golden Tombstone Awards 2022, with its case study Sustainability-Linked Bonds (SLBs). Held this week in São Paulo, the awards ceremony was attended by representatives from Klabin’s Corporate Finance, Investor Relations and ESG teams.
 
The company has a robust sustainable financing strategy that includes SLBs, which are bond issues linked to sustainability targets, further attesting to Klabin’s commitment to mobilizing capital with a focus on mitigating and adapting to climate change. Klabin’s SLB issue of US$500 million, due in 2031 and with an interest coupon of 3.2%, is subject to the fulfillment of three targets by 2025 linked to ESG criteria, one of which involves a commitment to reintroducing two extinct or endangered species in its forest areas. The definition of this target has made Klabin the world’s first company to link its financial terms to its biodiversity performance.
 
“We are very proud of this transaction which, aligned with the Klabin Sustainable Development Goals that guide the Klabin Agenda 2030, was recognized by the market and led the company to obtain the lowest yield ever for Brazilian companies with the same credit risk rating. This award crowns our commitment to sustainability and creating value and leaves us more motivated to continue on this path of respect for and focus on the environment in our business strategies,” said Gabriela Woge, Corporate Finance Officer at Klabin.
 
The transaction already was recognized by the Bonds & Loans Latin America & Caribbean Awards sponsored by the conglomerate GFC Media Group (GFC), in December 2021, which recognized Klabin in the category “ESG Deal of the Year” for its SLB issue as the best in Sustainability/ESG compared to other companies across Latin America and the Caribbean.

#KODS #PrêmioGoldenTombstone2022 #Sustentabilidade