Sanoma Issues EUR 150 Million Social Bond to Support Education
Recently, Sanoma Corporation issued senior unsecured social notes amounting to EUR 150 million. This significant step not only secures vital funding but also reinforces the company’s dedication to educational initiatives.
Overview of the Social Notes
The EUR 150 million social notes, referred to as the "Notes," will mature in three years, specifically on 13 September 2027. These notes feature a fixed annual interest rate of 4.000 percent, with an issue price set at 99.872 percent. Notably, the offering garnered interest from over 40 investors, reflecting strong confidence in Sanoma’s mission.
Impact on Education and Sustainability
Sanoma Learning is committed to helping around 25 million students achieve their full potential through innovative educational products and services. "By issuing our first social bond, we are giving investors an opportunity to support equal access to education and contribute to the UN Sustainable Development Goals, especially Goal 4: Quality Education," said Alex Green, CFO of Sanoma, who expressed excitement about the demand for these notes.
Future Plans and Listing
Sanoma plans to apply for the Notes to be included on the sustainable bonds list of Nasdaq Helsinki Ltd. The net proceeds from this bond issue will be allocated in accordance with the Social Bond Framework published by Sanoma, which highlights the company's commitment to sustainable education financing.
Role of Financial Institutions
Nordea Bank Abp and Swedbank AB (publ) acted as joint lead managers for this bond issuance. Additionally, Swedbank provided advisory services to help establish the Social Bond Framework, ensuring it aligns with compliance and sustainability objectives.
About Sanoma Corporation
Sanoma is known as an innovative and agile learning and media company, making a positive impact on millions of lives daily. With a strong sustainability strategy, Sanoma aims to enhance its societal contributions while reducing its environmental footprint. As a dedicated supporter of the UN Sustainable Development Goals, the company has signed onto the UN Global Compact to promote responsible business practices.
Broad Reach Across Europe
Operating in twelve European countries, Sanoma employs over 5,000 professionals, achieving net sales of approximately 1.4 billion euros in 2023, with an operational EBIT margin of 12.6%, excluding purchase price allocations. Their diverse portfolio includes both printed and digital learning resources, as well as comprehensive digital teaching platforms that cater to various educational levels.
Future Vision
Looking forward, Sanoma is committed to expanding its presence in the educational sector, providing solutions that empower teachers to nurture every child's potential. Their Finnish media segments continue to deliver independent journalism and engaging content, ensuring a sustainable media landscape for future generations.
Frequently Asked Questions
What is the purpose of Sanoma's social bond?
The social bond is designed to support equal access to education and contribute to the UN Sustainable Development Goals, particularly Goal 4: Quality Education.
Who managed the issuance of these social notes?
The issuance of the social notes was managed by Nordea Bank Abp and Swedbank AB as joint lead managers.
What are the details regarding the interest rate of the notes?
The notes have a fixed annual interest rate of 4.000 percent, with an issue price of 99.872 percent.
In which markets will the social bond be listed?
Sanoma intends to apply for the Notes to be listed on the sustainable bonds list of Nasdaq Helsinki Ltd.
What is Sanoma's overarching commitment?
Sanoma is committed to providing innovative learning solutions and promoting sustainable practices, aiming to maximize its positive societal impact while minimizing its environmental footprint.
