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SEB advised UPM on its Green Finance Framework update

UPM has published an updated Green Finance Framework reflecting its Biofore strategy and integrating the most recent market practices and standards. SEB acted as adviser on the structuring of the updated framework.

UPM, a Finnish forest industry company, published its first Green Financing Framework in 2020 and has since issued three green bonds totaling to EUR 1,750 million.

“This Framework update is a consistent and tangible step to further align UPM’s financing strategy with its purpose, objectives and sustainability targets. The framework will support UPM’s strategy and is a valuable tool that the company will use for the implementation of its growth strategy with an integrated sustainability approach,” says Fredrik von Platen, Sustainable Finance Specialist, at SEB’s Debt Capital Markets unit in Stockholm.

The second party opinion (SPO) of the framework provided by rating agency Standard & Poor’s remain Dark Green, even though three years has passed since the last SPO and expectations on UPM to qualify for the long-term vision has intensified during these years. Dark Green is the highest of the five grades S&P is using.

The SPO from S&P is the first one in the pulp and paper sector based on the new combined Cicero and S&P methodology. Cicero was a Norwegian consultancy company specialising in the rating of green bonds. S&P bought the company in 2022.

“This project is a great example of cross-border cooperation between the Finnish and Swedish teams in SEB, as well as cooperation with the client. UPM is one of the forerunners in the industry globally in sustainability and it is heartwarming to see that we have the people and team that can provide them world-class advisory,” says Anssi Kiviniemi, Head of Sustainability in Finland.

Full details on UPM’s Green Finance Framework and the Second Party Opinion can be found on UPM webpage.

About UPM’s funding strategy (upm.com)