Commercial, Energy Efficiency, Energy Storage, Industrial, Commercial, Finance, Industrial  -  June 14, 2017

Apple issues 2nd green bond, urges climate leadership

Doubling down on its corporate commitment to sustainability, Apple Inc. on June 13 issued its second green bond. 

The $1 billion green bond issuance builds on the $1.5 billion issuance the tech giant made in early 2016; that first one made history as the first green bond issuance by U.S. tech company and the largest issued by any U.S. corporation. Since then, the company has used proceeds from the sales of the bonds for renewable energy, energy efficiency and green building projects including many of the environmentally friendly features at its new headquarters in California. 

Now it's clear Apple was only getting started. The new issuance matures in 2027, and is expected to yield 95 to 100 basis points above Treasuries, Bloomberg News reported June 13 citing a person with knowledge of the matter. That person also said they are expected to be rated Aa1, according to the news company. 

In its filing with the SEC, Apple said it expects to use the proceeds from the bond sales for similar projects as its first: renewable energy and energy efficiency projects, and projects that will reduce emissions both within its own facilities and its supply chain. Additionally, it said it would use proceeds to advanced its goal of creating a closed loop supply chain that focuses on the entire life cycle of its products.  

Apple said in its filing:  "Leadership from the business community is essential to address the threat of climate change and protect our shared planet. This bond will support Apple's ongoing work to lower greenhouse gas emissions, drive renewable energy investment and conserve precious resources. We're proud to offer investors another opportunity to join us in this important work."

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