Norsk Hydro ASA has announced the successful placement of its inaugural European Green Bond (EuGB), issuing EUR 500 million (USD 571 million) in senior unsecured bonds under its Euro Medium Term Note (EMTN) Programme. To be listed on the Irish Stock Exchange (Euronext Dublin), the bond carries a tenure of eight years and a fixed annual coupon rate of 3.75 per cent, with a reoffer yield of 3.779 per cent.
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“We are delighted to have completed such a successful placement and issued our inaugural EuGB. The strong interest confirms that Hydro is considered an attractive investment for bond investors, supporting our strategy of pioneering the green aluminium transition, powered by renewable energy. We are pleased to have achieved highly competitive terms,” said Trond Olaf Christophersen, Chief Financial Officer of Norsk Hydro ASA.
The proceeds will fund eligible activities outlined in Hydro’s Green Bond Factsheet, marking Hydro as the Nordic region’s first EuGB issuer and reinforcing its commitment to sustainable finance.
The transaction was managed by a consortium of Joint Lead Managers, including BNP Paribas, Citi, Crédit Agricole Corporate and Investment Bank, DNB Carnegie, Goldman Sachs Bank Europe SE and Nordea.
Hydro’s European Green Bond Factsheet has received a pre-issuance review by Sustainable Fitch, confirming full alignment with both the European Green Bond Regulation and the ICMA Green Bond Principles. Additionally, Cicero (Centre for International Climate and Environment Research) awarded the framework an overall medium green shading, while Hydro’s governance structure and processes received an “Excellent” rating.
The issuance of this Green Bond marks a significant step for Hydro, as it strengthens the company’s position as a leader in the green transition of the aluminium industry. By allocating the raised capital to environmentally responsible initiatives, Hydro not only reinforces its sustainability credentials but also contributes to the broader development of the sustainable finance market in Europe.
The bond is expected to further support investments in renewable energy and low-carbon aluminium solutions, fostering long-term climate resilience and industry-wide transformation.
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