Commercial, Finance  -  September 23, 2021

Walmart Closes on Inaugural $2 Billion Green Bond

Walmart announced Sept. 23 that it has closed on its $2 billion inaugural green bond offering.

The retail giant priced its green bond earlier this month. The net proceeds will be allocated to fund projects related to renewable energy, building efficiency, sustainable transport and building a circular economy.

The proceeds will also fund habitat restoration and conservation projects and support renewable energy infrastructure like microgrids and energy storage projects.

This is Walmart’s first offering under its Green Financing Framework, which it published in August and details the company’s alignment with the 2021 ICMA Green Bond Principles.

Walmart will issue a public report on an annual basis about the allocation of bond proceeds until the equivalent of the net proceeds has been allocated. It also plans to provide impact reporting regarding the allocations.

The green bond is part of $7 billion of new senior unsecured notes that the company successfully closed across 5-, 7-, 10-, 20- and 30-year tranches.

“The closing of our first-ever green bond offering directs capital toward projects that will advance our environmental sustainability goals now and in the years to come. These goals include achieving 100% renewable energy by 2035 and zero emissions in our operations by 2040,” Kathleen McLaughlin, executive vice president and chief sustainability officer at Walmart, said in a statement. “Becoming a regenerative company is a journey. This green bond signals that we continue to make headway. We remain steadfast in our commitment to addressing climate change, transitioning to a circular economy and restoring natural ecosystems, all while supporting the communities in which we operate.”

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