Energy Efficiency, GHG Emissions, Finance - March 22, 2024
Alcoa Closes Inaugural Green Bond Offering
Alcoa Corporation announced that Alcoa Nederland Holding B.V., a wholly-owned subsidiary of Alcoa, closed its offering of $750 million aggregate principal amount of 7.125% senior notes due 2031.
The notes are guaranteed on a senior unsecured basis by Alcoa and certain of its subsidiaries.
The notes represent Alcoa’s inaugural Green Finance Instrument in alignment with its Green Finance Framework. Alcoa intends to use an amount equal to the net proceeds of the issuance of the notes to finance and/or refinance, in whole or in part, new and/or existing projects that meet certain eligibility criteria within the Framework. The net proceeds will also support Alcoa’s cash position and ongoing cash needs, including with respect to its previously announced portfolio actions. Additional details on eligibility criteria and use of proceeds are available in the Framework.
"We are pleased to advance our sustainability efforts by successfully issuing and closing this inaugural green bond offering,” said Executive Vice President and Chief Financial Officer Molly Beerman in a statement. “These Green Finance Instruments support our investments and products which enable the transition to a lower carbon economy.”
The Framework was developed in alignment with the International Capital Market Association’s 2021 Green Bond Principles, as well as the Loan Market Association, the Asia Pacific Loan Market Association and the Loan Syndications and Trading Association’s 2023 Green Loan Principles. It provides a structured approach for Alcoa to assess, select, and report on its green finance initiatives, supporting Alcoa in its sustainability efforts by aligning it with its financing strategy.
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