Linklaters advises the Joint Lead Managers on PostNL’s inaugural issuance of EUR 300,000,000 4.750 per cent. fixed rate Sustainability-Linked Bonds due 2031

Linklaters has advised BNP Paribas, Bank of America and ING on the inaugural issuance by PostNL, the Dutch leading mail and postal service, of sustainability-linked bonds (“SLBs”) in a principal amount of €300,000,000 with a 7-year maturity and an annual interest rate of 4.750 per cent.

PostNL has recently published its Sustainability-Linked Financing Framework (the “Framework”) and the second party opinion in relation thereto as provided by Sustainalytics. The Framework which identifies three primary Key Performance Indicators (KPIs) that align closely with PostNL’s strategy for environmental, social and governance (ESG) issues. PostNL has committed to reducing its absolute Scope 1 and 2 greenhouse gas (GHG) emissions by more than 90% and its absolute Scope 3 GHG emissions by 45% by 2030, using 2021 as the baseline year. Additionally, PostNL aims to boost the proportion of women in senior management roles to 36% by 2030.

The interest rate of the SLBs is linked to the KPIs that are described above. In case PostNL fails to achieve one or more of these targets by 2030, a single 100 bps coupon step-up, payable on the final interest payment date will apply.

The offering was successfully distributed among a diverse group of European institutional investors and the SLBs are admitted to trading on the regulated market of Euronext in Amsterdam.

BNP Paribas, Bank of America and ING acted as joint lead managers on the issuance. Bank of America also acted as sustainability advisor to PostNL.

The Linklaters team was led by Hugo van der Molen, counsel, and associates Tom van Steenbrugge and Akrit Anand.