By Scott Wright

WEIR Group has declared that it has been buoyed by the investor response to the first bond offering in the company’s 150-year history.

The Glasgow-based engineering giant is looking to raise $800 million with a bond offering aimed at institutional investors which underpins its environmental sustainability targets.

The interest paid on the bond to investors will rise if the company does not meet commitments made under its sustainability strategy.

Weir said the sustainability-linked notes will initially pay interest of 2.2 per cent per year. However, the interest will rise by 0.25% per annum, to 2.45%, from and including the last interest payment date before December 31, 2024, if the company does not meet its sustainability performance target.

Weir, which provides equipment and parts to the global mining industry, has committed to reducing its carbon footprint by 30% by 2024, and by 50% by 2030.

Chief executive Jon Stanton has regularly highlighted the role Weir can play in reducing the environmental impact of the mining industry by developing technology that can reduce operators’ water and energy usage.

John Heasley, the engineer’s chief financial officer, 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.”

The bond offering comes after Weir reported last week that it had seen an 11% rise in orders from continuing operations in the first quarter. Shares in Weir closed up 35p at 1,929p.