Preem’s €340 million green bond offering

Wigge & Partners’ Banking and Finance team has acted as legal advisor to the initial purchasers in connection with Preem’s €340 million offering of 12.000% senior notes due 2027 by Preem Holding AB (publ). The offering, which was conducted pursuant to Rule 144A and Regulation S under the U.S. Securities Act, closed on June 21, 2022.

The proceeds of the offering of the notes, together with available cash and cash equivalents, will be used to repay in full Preem’s existing term loan, including accrued interest, and to pay transaction costs, fees and expenses. Preem intends to allocate an amount equal to the net proceeds raised by the offering, in accordance with its new green financing framework, to eligible green projects, renewable raw materials and assets. Preem estimates that around 60% of allocated funds will relate to capital expenditures to increase renewable fuels production and the remainder to procurement of renewable feedstock.

Our team consisted of partners Lisa Antman and Andreas Malmberg together with associate Arvid Hed and Fredrik Arvebratt.

Forest in a fog