Glasgow-based global engineering and mining giant Weir Group announced that it has priced the offering of £300 million aggregate principal amount of 6.875% sustainability-linked notes due June 14, 2028.

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 CFO John Heasley said: “We are delighted with the positive response to the group’s debut investment grade sterling denominated bond offering.

“The net proceeds of the offering will be used to repay existing borrowings and for other general corporate purposes. 

“As well as further strengthening our balance sheet with long-dated liquidity, the structuring of the offering as sustainability-linked notes underlines our commitment to reducing our environmental impact in line with our sustainability roadmap and ambitious SBTi approved targets.”

The notes will initially bear interest at a rate of 6.875% per annum to be paid annually in arrears on June 14 in each year.

Weir added: “The notes will initially bear interest at a rate of 6.875% per annum to be paid annually in arrears on 14 June in each year.

“The interest on the notes will be linked to achievement of Weir’s Sustainability Performance Target (SPT) to reduce absolute scope 1&2 market-based CO2e by 19.1% by 2026 from a 2019 baseline. 

“The interest rate applicable to the notes will increase by 0.75% at maturity for the final coupon if the group does not attain its SPT as of 31 December 2026. 

“The offering is expected to settle and close on 14 June 2023, subject to customary conditions precedent for similar transactions.”