Swedish fuel company Preem issues €340m of green debt

Preem, a large Swedish fuel company, has issued green debt worth €340m. The issuance, which aligns with the company’s green financing framework, is expected to bolster its ability to achieve net-zero carbon emissions by 2035. The company’s climate goals span Scopes 1, 2 and 3. According to the company's statement, the proceeds will be used to augment capacity expansion in renewable refining. The statement confirms that Preem "intends to use the proceeds from the offering, together with available cash and cash equivalents, to repay in full an existing term loan, including accrued interest, and to pay transaction costs, fees and expenses. Preem intends to allocate an amount equal to the net proceeds raised by the offering, in accordance with the Preem Green Financing Framework, to eligible green projects, renewable raw materials and assets".