EQT AB (publ) successfully completes a EUR 500,000,000 sustainability-linked bond with 10 year maturity and 0.875 percent coupon

STOCKHOLM, May 14, 2021 /PRNewswire/ -- EQT AB (publ) has today successfully completed a EUR 500,000,000 sustainability-linked bond maturing in 2031 (the "SLB"). The SLB has a coupon of 0.875 percent per annum, which is subject to an increased rate upon the occurrence of triggers linked to certain sustainability performance targets.

The SLB is EQT AB's first bond and underscores its approach of having sustainability as an integral part of the business model of both the EQT AB Group and the EQT funds' portfolio companies. The SLB is the first sustainability-linked note to be issued by a private equity firm where the bond's coupon rate is connected to predetermined sustainability performance targets. The SLB therefore enables EQT AB to connect sustainability with its funding cost and thereby incentivize the achievement of its sustainability ambitions. The chosen targets for the SLB are related to setting science based targets for greenhouse gas reductions and to EQT AB's commitment to gender diversity, both within the EQT AB Group and in the EQT funds' portfolio company boards.

The SLB will further increase the EQT AB Group's financial flexibility and be used for corporate purposes, supporting the EQT AB Group's growth initiatives and long-term strategy. The SLB follows the signing of a EUR 1 billion revolving credit facility in December 2020 which will also incorporate a pricing mechanism linked to ESG-related objectives.

Christian Sinding, CEO said: "As a purpose driven investor and owner, EQT combines value creation for its investors with a broader societal and environmental perspective. The bond marks another step in how we put our purpose of making a positive impact into practice, in line with EQT's overall approach of integrating sustainability throughout its activities, both on EQT AB Group level and within the EQT funds."

Kim Henriksson, CFO, added: "The sustainability-linked bond further increases EQT's financial flexibility to support growth initiatives and our long-term strategy. The bond diversifies EQT's funding sources and establishes a direct link between EQT's financing cost and sustainability ambitions."

EQT AB's long-term issuer credit rating has been confirmed by Fitch Ratings Ltd. to be A- with a stable outlook as at 4 May 2021.

The ESG aspects of the SLB 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.

The SLB has been listed and admitted to trading on the Luxembourg Stock Exchange's Euro MTF market.

Characteristics of the Sustainability-Linked Bond:

Total amount issued: EUR 500,000,000

Maturity: 10 years

Interest rate: 0.875 percent per annum, subject to an increased rate upon failure to achieve certain sustainability key performance targets

Listing: Euro MTF, Luxembourg Stock Exchange

Goldman Sachs Bank Europe SE and Morgan Stanley & Co. International plc acted as global coordinators and joint lead managers, BNP Paribas, Nordea Bank Abp and Skandinaviska Enskilda Banken AB (publ) acted as joint lead managers, and Deutsche Bank Aktiengesellschaft and DNB Bank ASA acted as co-lead managers in connection with the bond issue (collectively, the "Managers").

Contact
Olof Svensson, Head of Shareholder Relations, +46 72 989 09 15
Nina Nornholm, Head of Communications, +46 70 855 03 56
EQT Press Office, press@eqtpartners.com

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.

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 were not 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 or to 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 SLB 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 SLB 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 SLB or any arrangement or other matter referred to therein.

About EQT
EQT is a purpose-driven global investment organization focused on active ownership strategies. With a Nordic heritage and a global mindset, EQT has a track record of almost three decades of delivering consistent and attractive returns across multiple geographies, sectors and strategies. Uniquely, EQT is the only large private markets firm in the world with investment strategies covering all phases of a business' development, from start-up to maturity. Including Exeter, EQT today has more than EUR 67 billion in assets under management across 26 active funds within two business segments – Private Capital and Real Assets.

With its roots in the Wallenberg family's entrepreneurial mindset and philosophy of long-term ownership, EQT is guided by a set of strong values and a distinct corporate culture. EQT manages and advises funds and vehicles that invest across the world with the mission to future-proof companies, generate attractive returns and make a positive impact with everything EQT does.

The EQT AB Group comprises EQT AB (publ) and its direct and indirect subsidiaries, which include general partners and fund managers of EQT funds as well as entities advising EQT funds. EQT has offices in 24 countries across Europe, Asia-Pacific and the Americas and has more than 975 employees.

More info: www.eqtgroup.com

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