Lenzing Group’s subsidiary, LD Celulose International GmbH, has successfully issued Green Notes worth $650 million. The notes, which mature on January 25, 2032, have a coupon rate of 7.95 per cent per annum and were in high demand among institutional investors.
This funding is part of a broader $1 billion financing strategy for LD Celulose S.A. (LDC), a joint venture between Lenzing and Duratex. It also includes a $350 million syndicated term loan. The proceeds from the Green Notes, along with the term loan and cash reserves, will be used to repay existing financial obligations and fund eligible green projects in line with the company’s Green Financing Framework.
Rohit Aggarwal, CEO of Lenzing Group, emphasized the company's commitment to sustainability, noting that the strong investor interest reflects Lenzing's leadership in sustainable textiles and nonwovens. CFO Nico Reiner added that the transaction transitions LDC's financing to a standalone corporate structure, supporting its position as one of the largest dissolving wood pulp plants globally, with a capacity exceeding 500,000 tons annually.
The Green Notes, issued by LD Celulose International GmbH and guaranteed by LDC and LD Florestal SA, will be listed on the Singapore Stock Exchange. This strategic move further aligns with Lenzing’s vision of enhancing sustainability in the textile and nonwovens industry.
