Dutch operator KPN issues €700M sustainability-linked bond

KPN NV said Nov. 8 that it issued its first sustainability-linked bond, amounting to €700 million, as part of its goal to achieve net-zero emissions by 2040.

The bond has a tenure of 12 years, maturing Nov. 15, 2033, and a coupon rate of 0.875% per annum.

If KPN does not achieve its emissions reduction target on Dec. 31, 2030, the bond will see an increase in the interest rate of 0.375% annually from Nov. 15, 2031, until the maturity date. The interest rate of the bond will remain unchanged if KPN meets its goal.

KPN aims to reduce by 30% the absolute carbon emissions across its value chain by the end of 2030, compared with its 2014 discharge.

CFO Chris Figee said KPN is using 100% green electricity and has "significantly" reduced its energy consumption.

The bond will be listed on the regulated market of Euronext Dublin. Proceeds will be used for general corporate purposes, including refinancing of existing debt.

Barclays PLC, BNP Paribas SA, Deutsche Bank AG, ING Bank Slaski SA and SMBC Nikko served as joint lead managers for the debt offering. ING also acted as ESG structuring adviser.