EQT AB Group

EQT AB (publ) has successfully priced a total of EUR 1.5 billion of sustainability-linked bonds

This press release is not intended for publication, dissemination, transmission or distribution directly or indirectly to or within any jurisdiction in which to do so would be unlawful.

EQT AB (publ) has today successfully priced a EUR 750,000,000 sustainability-linked bond maturing in 2028 and a EUR 750,000,000 sustainability-linked bond maturing in 2032 (the “SLBs”). The SLBs will have a coupon of 2.375 percent per annum for the bond maturing in 2028 and 2.875 percent per annum for the bond maturing in 2032. The SLBs will be subject to separate step-ups in their respective interest rates if the sustainability performance target is not met. The SLBs will be issued on 6 April 2022, subject to customary closing conditions.

On 16 March 2022, EQT announced the combination with Baring Private Equity Asia (BPEA), a leading private markets investment firm in Asia. EQT intends to use the net proceeds of the SLBs, together with the issue of ordinary shares and cash, to fund the consideration and transaction expenses in connection with the combination.

Similar to EQT’s inaugural bond in 2021, the SLBs’ coupon rates will be connected to a predetermined sustainability performance target. The sustainability performance target under the SLBs will be that 40 percent of eligible EQT Funds’ private and listed equity portfolio companies (by EUR invested capital) shall have set science-based targets (SBTs), approved by the Science Based Target initiative (SBTi), by 2025. The SLBs’ thus reinforces EQT AB’s approach of having sustainability as an integral part of the business model of both the EQT AB Group and the EQT funds’ portfolio companies.

EQT had its own Science Based Targets approved in 2021, the first private markets firm globally to do so.

Kim Henriksson, CFO, said, “By linking EQT’s financing cost to sustainability performance targets, we create additional incentives for rapid implementation of Science Based Targets among the relevant portfolio companies. In addition, the sustainability-linked bonds will further diversify our funding sources. With long-term financing in place, we future-proof EQT’s financing structure in anticipation of the combination with BPEA and beyond.”

EQT AB’s long-term issuer credit rating has been confirmed by Fitch Ratings Ltd. to be A- with a negative outlook as of 21 March 2022.

The ESG aspects of the SLBs have been structured to reflect EQT AB’s Sustainability-Linked Financing Framework, which was established in accordance with the ICMA’s sustainability-linked bond principles.

An application has been made for the SLBs to be listed and admitted to trading on the Luxembourg Stock Exchange’s Euro MTF market.

Characteristics of the Sustainability-Linked Bond maturing in 2028:
Total amount to be issued: EUR 750,000,000
Maturity: 6 years
Interest rate: 2.375 percent per annum, subject to an increase of 0.25 percentage points if the sustainability performance target is not met
Listing: Euro MTF, Luxembourg Stock Exchange

Characteristics of the Sustainability-Linked Bond maturing in 2032:
Total amount to be issued: EUR 750,000,000
Maturity: 10 years
Interest rate: 2.875 percent per annum, subject to an increase of 0.20 percentage points if the sustainability performance target is not met
Listing: Euro MTF, Luxembourg Stock Exchange

Morgan Stanley & Co. International plc is acting as sole global coordinator, and together with BNP Paribas, Goldman Sachs Bank Europe SE, J.P. Morgan SE, Nordea Bank Abp and SEB are acting as joint lead managers, and Crédit Agricole Corporate and Investment Bank, DNB Bank ASA, Mizuho Securities Europe GmbH, NatWest Markets N.V. and Swedbank AB (publ) are acting as co-lead managers in connection with the bond issue (collectively, the “Managers”).

DISCLAIMER:
This press release is for information purposes only and is not an offer to sell or subscribe securities or a solicitation of an order to purchase or subscribe securities in any jurisdiction. The securities mentioned in this press release were not offered through a public offering and no related documents will be distributed to the public in any jurisdiction.

This press release does not constitute an offer for sale of securities in the United States of America or any other jurisdiction. These securities will not be offered or sold in the United States of America. EQT AB (publ) has not and does not intend to register any of the securities mentioned in this announcement in the United States orto conduct a public offering of securities in the United States.

The manufacturer target market (MIFID II/UK MIFIR product governance) is eligible counterparties and professional clients (all distribution channels). No EU PRIIPs or UK PRIIPs key information document has been prepared as the SLBs will not be available to retail investors in the EEA or the United Kingdom.

This press release is not a prospectus for the purposes of Regulation (EU) 2017/1129.

This press release may be sent to persons located in the United Kingdom only under circumstances where section 21(1) of the Financial Services and Markets Act 2000 does not apply. This press release is directed only at (i) persons who are outside the United Kingdom (the “UK”), or (ii) persons who are in the UK who are (a) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (b) who are high net worth entities falling within Article 49(2)(a) to (d) of the Order, and other persons to whom it may otherwise lawfully be communicated under the Order (all such persons together being referred to as “relevant persons”). This press release is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.

This press release does not constitute nor form a part of any offer or solicitation to purchase or subscribe for securities in Singapore or elsewhere. The notes referred to herein have not been and will not be offered or sold or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor (as defined in Section 4A of the Securities and Futures Act (Chapter 289) of Singapore, as modified or amended from time to time (the “SFA”)) pursuant to Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

Notification under Section 309B(1)(c) of the SFA - In connection with Section 309B of the SFA and the Securities and Futures (Capital Markets Products) Regulations 2018 of Singapore (the “CMP Regulations 2018”), EQT AB (publ) has determined, and hereby notifies all relevant persons (as defined in Section 309A(1) of the SFA), the classification of the securities referred to herein as prescribed capital markets products (as defined in the CMP Regulations 2018).

The subscription or purchase of securities of EQT AB (publ) may have been and may be subject to specific legal or regulatory restrictions in certain countries. EQT AB (publ) assumes no responsibility for any violation by any person of these restrictions. The distribution of this press release in certain jurisdictions may be restricted by law.

The Managers are only acting for EQT AB (publ) in connection with the issuance of the SLBs and no one else and will not be responsible to anyone other than EQT AB (publ) for providing the protections offered to clients of the Managers nor for providing advice in relation to the issuance of the SLBs or any arrangement or other matter referred to therein.

Contact
Olof Svensson, Head of Shareholder and Bondholder Relations, +46 72 989 09 15
Rickard Buch, Managing Director Communications, press@eqtpartners.com, +46 72 989 09 11
EQT Press Office, press@eqtpartners.com +46 8 506 55 334

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