Citi Launches its First USD-Denominated Green Bond

(Credit: Pixabay)

by | May 11, 2020

(Credit: Pixabay)

Citi today announced the issuance of the firm’s first USD-denominated benchmark green bond. This bond follows Citi’s inaugural Euro-denominated green bond benchmark issued in January 2019.

Citi says that an amount equal to the net proceeds of this green bond will fund renewable energy, sustainable transportation, water quality, and conservation, energy efficiency, and green building projects as outlined in Citi’s Green Bond Framework.

Citi made a 10-year commitment to finance and facilitate $100 billion in activities that provide environmental benefits and reduce the impacts of climate change, beginning in 2014.

But Citi isn’t the only major American institution getting into sustainable investing. In late March, Pfizer announced it had completed a $1.25 billion 10-year sustainability bond paying interest semi-annually of 2.625% and maturing April 1, 2030. This was Pfizer’s first-ever sustainability bond and a first for a biopharmaceutical company.

Proceeds from Pfizer’s bond will help manage the company’s environmental impact and support increased patient access to Pfizer’s medicines and vaccines, especially among underserved populations, and strengthen healthcare systems.

Additionally, in early March, Prudential Financial announced the offering of the firm’s first green bond with a principal amount of $500 million, representing the first green bond issuance of its kind by a major US life insurer. The green bond was offered alongside an additional $1 billion of Prudential debt on March 5.

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