Glasgow-based global engineering and mining giant Weir Group announced on Friday it has completed its first ever syndicated bond deal as it priced the offering of $800 million of 2.20% Sustainability-Linked Notes due May 13, 2026.

Application has been made for the Notes to be admitted to the Official List of Euronext Dublin and to trading on the Global Exchange Market of Euronext Dublin.

Weir Group chief financial officer John Heasley said: “We are delighted with the positive response to the group’s first syndicated bond offering in our 150-year history. 

“The proceeds will be used to repay existing debt maturing in 2022 and 2023, and for other general corporate purposes. 

“In addition to strengthening our balance sheet further, the structuring of the offering as Sustainability-Linked Notes also reaffirms our commitment to reducing our environmental impact, including delivering a 30% reduction in emissions by 2024.”

Weir Group shares have risen about 100% over the past 12 months to give it a current stock market value of around £5 billion and see it return to the FTSE 100 amid analysts’ enthusiasm for its strategy of targeting global mining markets after selling its oil and gas division.

Weir Group added in a stock exchange statement on Friday: “The Notes will initially bear interest at a rate of 2.20% per annum to be paid semi-annually on 13 May and 13 November.

“The interest on the Notes will be linked to achievement of Weir’s 2024 Sustainability Performance Target (SPT) to reduce Scope 1 & Scope 2 emissions by 30%.

“The interest rate applicable to the Notes will increase by 0.25% to 2.45% per annum from and including the last interest payment date preceding 31 December 2024 if the Group does not attain its SPT.

“The Offering is expected to close and the Notes are expected to be issued on or about 13 May 2021, subject to customary conditions precedent for similar transactions.”