12/06/2024 12:29
The issue, with a total nominal value of EUR 60 million and a fixed annual interest rate of 4.125%, underscores JGL’s significant role as an issuer driving the development of the domestic capital market.JGL has successfully completed the largest sustainability-linked bond issue in Croatia’s private non-financial sector, raising EUR 60 million with a maturity date set for 2029. The issue represents the fifth bond that JGL has issued on the domestic capital market.
At the Zagreb Stock Exchange, JGL’s CEO Mislav Vučić and Zagreb Stock Exchange President Ivana Gažić formalised the listing agreement for the bond identified by the symbol JDGL-O-29CA and the international code (ISIN) HRJDGLO29CA5 on the Official Market of the Zagreb Stock Exchange. The signing was also attended by JGL Member of the Board of Directors Eva Usmiani Capobianco, Corporate Finance Director Anton Barbir, as well as representatives from the issue arrangers and participating banks.
In his speech, Mislav Vučić highlighted that the latest bond issue reaffirms JGL’s role as a long-standing contributor to the development of the domestic capital market and provides the company, among other things, with the means to finance projects crucial for environmental protection.
“This is a particularly important step for the future growth and development of JGL’s business. Through investments in new markets, advanced technologies, and both current and future employees, we remain committed to our ambitious and sustainable journey. "We have successfully concluded an outstanding transaction, and I am especially pleased to see the company’s solid position in the financial market reaffirmed. The strong response from investors allowed us to secure financing under competitive market conditions. I appreciate the support and the security it has provided us in advancing our strategic goals,” said Vučić, highlighting the significance of broadening investor support for the new bond. He particularly noted the strong interest from commercial banks and the involvement of pension funds, which accounted for 20% of the total issue.
The bonds offer a fixed annual interest rate of 4.125% and were issued with a yield of 4.20%, priced at 99.665%. Holders of old JGL 2019 bonds were given the option to exchange them for the new bonds, leading to the redemption of 63% of the old bonds, totalling 11 million euros.
Usmiani Capobianco expressed her satisfaction with the participation of 15 institutional investors in the subscription of the new bonds, as well as the interest shown by individual investors. The attractiveness of this issue was also recognised by the European Bank for Reconstruction and Development (EBRD), which participated with 17%. This marks their first involvement in a Croatian sustainability-linked bond issue within the pharmaceutical sector. JGL’s Member of the Board of Directors stated that, in addition to refinancing the five-year JDGL-O-24XA bond with a nominal value of 17.25 million euros, the company plans to invest the raised capital in projects aligned with its ambitious strategy, as well as potentially financing new acquisitions.
The strong investor interest, exceeding 90 million euros, was further driven by the establishment of two ambitious sustainability performance targets. These goals are focused on reducing greenhouse gas emissions through energy efficiency improvements and the use of renewable energy sources, as well as expanding access to specialised screenings for ocular hypertension.
“We welcome this listing of JGL bonds. The domestic market undoubtedly benefits from the addition of more corporate bonds, and we are particularly pleased that this instrument is tied to sustainable business practices, which are increasingly significant for investors in their decision-making process. Such bond issues support the modern objectives of the green transition within our economy, expand the range of investment opportunities in our market, and contribute to improving living conditions for the entire community,” concluded Ivana Gažić, President of the Management Board of the Zagreb Stock Exchange.
The joint agents for the issue are Erste & Steiermärkische Bank d.d. and Privredna banka Zagreb d.d., with the legal advisor for the transaction being Mamić Perić Reberski Rimac Law Firm d.o.o. PricewaterhouseCoopers d.o.o. served as the ESG advisor in preparing the framework document for the issuance of sustainability-linked bonds, while the compliance of the framework with the International Capital Market Association (ICMA) principles for sustainability-linked bonds was confirmed by the independent external assessor ISS-Corporate.