Why is Wesfarmers (ASX:WES) trading a tad higher today

Highlights

  • Wesfarmers Limited has announced its decision issue regarding the issuance of Euro sustainability-linked bond.
  • The Company has revealed that the interest rate payable on the Euro sustainability-linked bond relate to the progress against specific renewable electricity and emissions performance targets.

ASX-listed Australian Company engaged in various businesses ranging from home improvement and outdoor living to manufacturing and distribution of industrial products & fertilizers Wesfarmers Limited (ASX:WES) on Friday announced its decision to issue its first Euro sustainability-linked bond.

The Company stated that it will issue Euro denominated sustainability-linked bond in the European debt capital markets, with the interest rate payable on the bond linked to the progress against specific renewable electricity and emissions performance targets.

Read More: Three ASX penny stocks benefiting from crude oil rally

According to today’s announcement, Wesfarmers will raise close to AU$938 million following the pricing this week of a twelve-year unsecured fixed-rate sustainability-linked bond maturing in October 2033 under its 3 billion Euro Medium Term Note Programme. The returns of the issue will be exchanged back at a fixed interest rate of approximately 3.0 %.

Wesfarmers also informed that the interest rates payable on both the Australian denominated and Euro denominated sustainability-linked bonds depend upon the Company’s progress against two sustainability performance targets. The performance targets are linked to increasing renewable electricity use in the Group’s retail divisions and decreasing the CO2e emanations intensity of ammonium nitrate production in the Wesfarmers Chemicals, Energy and Fertilisers division.

Meanwhile, the stock WES was spotted trading a tad higher at AU$54.720 per share on ASX at 1:40 PM AEDT.

Read More: IAG (ASX:IAG) under ASIC lens for ‘misleading’ customers over discounts

Bottom Line:

WES’ decision to issue Euro sustainability-linked bond depicts the strength of the Wesfarmers businesses and the significance of its sustainability priorities in supporting long-term value creation. Besides, following the maturity of a EUR600 million bond earlier this month, this new sustainability-linked bond ensures a sustained presence in major credit markets. Nonetheless, the Company’s strong balance sheet position provides flexibility to support the Group in progressing its key strategic priorities to support sustainable, long-term growth.

Comment


Disclaimer

Ad

GET A FREE STOCK REPORT


Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.


   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK