Sustainable fuel producer Neste announced that it has raised €700 million (USD$765 million) in a green bond offering, with proceeds aimed at supporting the expansion of its Rotterdam refinery, set to become the largest renewable diesel and sustainable aviation fuel (SAF) facility in the world, according to the company.

Finland Neste provides renewable and circular solutions for sectors including road transport, aviation, and polymers and chemicals. The company’s products include Neste MY Sustainable Aviation Fuel, made from sustainably sourced renewable waste and residues such as used cooking oil and animal fat waste, and compatible with existing aircraft engines and airport fuel infrastructure, and Neste MY Renewable Diesel, produced from renewable raw materials using a hydrogen treatment process, that can be used as a drop-in replacement to fossil diesel, to significantly reduce GHG emissions.

The company’s Rotterdam refinery started producing renewable products in 2011, and has a current capacity of 1.4 million tons. Neste is undertaking a €1.9 billion expansion of the refinery, aimed at expanding its annual renewable product capacity to 2.7 million tons, which would include 1.2 million tons of sustainable aviation fuel, with a target to start up the new production unit in 2026. Neste recently signed a deal with DHL to provide the logistics giant with 300,000 tons of unblended SAF per year by 2030.

Anssi Tammilehto, Interim CFO of Neste, said:

“The recent development in the renewables market has been challenging, but we have a clear plan forward. We are pleased to see strong participation from high-quality investors in this new issue. The net proceeds from this Green Bond are expected to be steered towards our expansion of the Rotterdam refinery, which is expected to become the world’s largest renewable diesel and sustainable aviation fuel facility.”

The new 5-year green bond will pay a fixed coupon of 3.75%.