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Financing connected to ambitious sustainability targets

The industrial group Axel Johnson International, which develops and acquires technical companies in strategic niche markets, chose sustainability-linked working capital financing from SEK.

Sustainability-linked loans

Facts

Transaction: Sustainability-linked loan
Amount: EUR 55 million
Maturity: 5 years
Borrower: Axel Johnson International

Facts

Transaction: Sustainability-linked loan
Amount: EUR 55 million
Maturity: 5 years
Borrower: Axel Johnson International

An increasing number of companies want to link their financing to ambitious sustainability targets. Sustainability-linked loans finance the working capital used to promote the borrower’s climate-neutral transitioning of its operations and to achieve important operational social targets.

“Offering sustainability-linked loans is a way for us to guide financing toward tangible and measurable targets, while offering the customer a more advantageous price. This is a win-win for all parties, but particularly the climate.”

JENS HEDAR, HEAD OF CLIENT RELATIONS AT THE SWEDISH EXPORT CREDIT CORPORATION

If the industrial group Axel Johnson International reaches its loan-linked sustainability target, a lower interest rate will apply for the company’s loan. The target aims to reduce the operation’s climate impact and involves increasing the share of renewable electricity as well as energy-efficiency enhancements in own operations and internal transportation.

“We see this loan from SEK as positive and it is designed to contribute to our continued acquisition journey. In time, we would like to see a larger share of our total financing linked to our ambitious sustainability targets.”

OLA KARLSSON, CFO, AXEL JOHNSON INTERNATIONAL

Axel Johnson International is a privately owned Swedish industrial group that consists of 150 companies across 30 countries. The company’s operations are characterized by an active, long-term ownership with the ambition of promoting renewal and creating growth. Focus is placed on companies active in strategic select niche markets that offer technical components and industrial process solutions. The Group currently has six business areas: Driveline Solutions, Fluid Handling Solutions, Industrial Solutions, Lifting Solutions, Power Transmission Solutions and Transport Solutions. Axel Johnson International is part of the family-owned Axel Johnson Group.

Anna Karin Ljung Pulp, Paper and Construction, SEK

Would you like to know more?

Contact Anna Karin for more information.

anna-karin.ljung@sek.se

+46 8 613 85 33

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