Yesterday Apple issued its second “green bond”, a $1 billion bond dedicated to financing renewable energy, energy efficiency at Apple facilities and throughout its supply change, to close its supply chain loop, and procure safer materials for its products.
The bond offering includes a specific focus on helping Apple meet a goal of
- developing a closed-loop supply chain and
- using only renewable resources or recycled material in the manufacture of its products.
The bond is to mature in 2027 and will yield 95 to 100 basis points more than Treasuries. Bank of America Corp., Goldman Sachs Group Inc. and JPMorgan Chase & Co. arranged the sale.
Investors are seeking lower-carbon investments. Demand for green bonds is growing significantly.
According to the Climate Bonds Initiative, in 2016 $81 billion of green bonds were issued. This is double the number of green bonds that were issued in 2015.
See:
“Apple Issues a Second Green Bond to Finance Clean Energy” | Alex Webb, Bloomberg, 13 June 2017
“Apple issues $1 billion green bond after Trump’s Paris climate exit” | by Valerie Volcovici, Reuters, 13 June 2017
Climate Bonds Initiative | “Climate Bonds Initiative is an international, investor-focused not-for-profit. We’re the only organisation working solely on mobilising the $100 trillion bond market for climate change solutions.”
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