Kellogg Issues $363 Million Sustainability Bond

(Credit: Pixabay)

by | May 14, 2021

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(Credit: Pixabay)

Kellogg Company today announced it has successfully priced a $363 million (EUR 300 million) 8-year Sustainability Bond with an interest coupon of 0.50% per annum, a first for the global food company.

This bond transaction is in line with Kellogg’s newly introduced Sustainability Bond Framework, which facilitates the company’s use of sustainable capital markets to finance or refinance eligible projects that align with its commitments.  Kellogg’s Sustainability Bond Framework has been reviewed by Sustainalytics, a second-party opinion provider and is aligned with the Green Bond Principles and the Social Bond Principles.

The net proceeds from the Sustainability Bond will support progress already made against the company’s Better Days commitment to address the interconnected issues of wellbeing, hunger relief, and climate resiliency to create Better Days for 3 billion people and the planet by 2030. An amount equal to the net proceeds will be used to finance or refinance projects within one or more of these categories: food security and sustainable food systems, renewable energy, energy efficiency, circular economy, environmentally sustainable management of living natural resources and land use, green buildings, and sustainable water and wastewater management.

Sustainability Bonds have grown in popularity over the last couple of years. Earlier this week, Environment + Energy Leader reported that Amazon issued a $1 billion Sustainability Bond. The proceeds will be used to fund projects in five areas, building on significant investments Amazon has made over the years: renewable energy, clean transportation, sustainable buildings, affordable housing, and socioeconomic advancement and empowerment.

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