Yahoo Finance Lassila & Tikanoja launches a Sustainability-Linked Bond Framework
Lassila & Tikanoja Plc
Stock Exchange Release
6 May 2022 at 9.30
Lassila & Tikanoja launches a Sustainability-Linked Bond Framework
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Lassila & Tikanoja Plc has launched a Sustainability-Linked Bond Framework and the company is considering the issuance of new fixed rate notes under it. The financial characteristics of the notes are linked to the achievement of two Sustainability Performance Targets, namely reducing GHG emissions from L&T’s own operations (scope 1 and 2) and contractors’ fuel consumption for transportation (scope 3).
The Sustainability-Linked Bond Framework has been reviewed by Sustainalytics, a second opinion provider, confirming the alignment with the Sustainability-Linked Bond Principles published by ICMA. Sustainalytics consider the Sustainability Performance Targets in the framework to be ambitious and the related Key Performance Indicators to be strong*, also due to the direct emission target having been validated by the Science Based Target initiative (SBTi).
“Lassila & Tikanoja is proud to be among the first Finnish listed companies to consider issuing sustainability-linked notes. Our mission is to make circular economy a reality and sustainability is at the very heart of our strategy. Introducing a framework and notes for sustainability-linked financing underlines the deep sustainability commitment of Lassila & Tikanoja.” says Valtteri Palin, CFO of Lassila & Tikanoja.
The Sustainability-Linked Bond Framework is built around Key Performance Indicators material to L&T’s business and they promote sustainability improvements that mitigate climate change. The establishment of the framework is a continuation to the newly signed revolving credit facility of EUR 40 million tied to sustainability targets.
The Sustainability-Linked Bond Framework together with the external second party opinion are available on L&T’s website at lt.fi/en/investors. Danske Bank acted as the Sole Sustainability Structuring Advisor in the development of the framework.
* Sustainalytics has assessed the Key Performance Indicators with a scale of Not Aligned, Adequate, Strong and Very Strong. The ambitiousness of the Key Performance Indicators has been assessed with a scale of Not aligned, Moderately ambitious, Ambitious and Highly Ambitious.
Additional information:
Valtteri Palin, CFO, tel. +358 40 734 7749
Lassila & Tikanoja is a service company that is putting the circular economy into practice. Together with our customers, we keep materials and properties in productive use for as long as possible and we enhance the use of raw materials and energy. This is to create more value with the circular economy for our customers, personnel and society in a broader sense. Achieving this also means growth in value for our shareholders. Our objective is to continuously grow our actions’ carbon handprint, our positive effect on the climate. We assume our social responsibility by, for example, looking after the work ability of our personnel and also offering jobs to those who are struggling to find employment. L&T operates in Finland and Sweden. L&T employs 8,100 people. In 2021, the company’s net sales amounted to EUR 812.5 million. L&T is listed on Nasdaq Helsinki.
Distribution:
Nasdaq Helsinki
Major media
www.lt.fi/en/
