Walmart Secures $2 Billion Green Bond

(Credit: Pixabay)

by | Sep 9, 2021

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(Credit: Pixabay)

Walmart has priced the company’s first green bond, a $2 billion offering intended to advance its goal of achieving total renewable energy.

The net proceeds of the bond will be a part of an eligible green investments portfolio and fund existing and future projects, which include developing high efficiency buildings, sustainable transport and zero waste objectives. Walmart has widely publicized its massive sustainability targets, which include becoming emissions free by 2040 and using 100% renewable energy to power its facilities and long-haul fleet.

The bond will also help Walmart work toward its establishedgoal of using 50% renewable energy across the company by 2025 and cutting 1 billion metric tons of emissions by 2030 as outlined in its Project Gigaton plan. Additionally, Walmart has pledged to cut use of virgin plastics by 2025.

Bloomberg reported that Walmart’s agreement is the largest green bond by a US corporation, surpassing previous $1.5 billon deals that both NextEra Energy Capital and Apple achieved.

Sustainability bonds are growing at a record pace and could hit $1 trillion in 2021 and green bonds are specifically designed for eligible green programs and projects.

On top of the business elements of Walmart’s green bond, the also plans to use funds from the deal to promote habitat restoration and conservation.

The Walmart green bond is part of $7 billion of new senior unsecured notes that the company has priced over 5-, 7-, 10-, 20- and 30-year tranches.

Walmart says it will issue an annual public report with information on the impact of the eligible green investments until the amount of the net proceeds of the bond have been allocated. The company will use an outside environmental expert to participate in the reports as well as its external auditor.

Bank of America is the green structuring agent of Walmart’s bond. The bond is also managed by AmeriVet Securities, Samuel A. Ramirez & Company, Siebert Williams Shank & Co., Citigroup Global Markets and Morgan Stanley.

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