Pilgrim’s Pride Corp. said Thursday it offered $1 billion in sustainability-linked bonds tied to its greenhouse gas emission reduction efforts, becoming the first global meat company to issue debt tied to environmental targets.
The poultry processor earlier this week set a commitment to achieve net-zero greenhouse gas emissions by 2040.
“Today’s announcement firmly ties our financial strategy to our long-term commitment to address climate change, the defining issue of our time,” Fabio Sandri, Pilgrim's global chief executive officer, said in a press release.
The bonds, which mature in 10 years, priced at a yield of 4.375%, according to a Bloomberg report. Pilgrim's said proceeds from the offering would be used to pay its outstanding 5.75% senior notes due in 2025.
Sustainability-linked bonds have gained in popularity in recent months as companies in response to growing investor interest in tackling climate change.
Pilgrim's bonds link to a Sustainability Performance Target (SPT) of achieving a 30% reduction in Scope 1 and 2 greenhouse gas emission intensity across the company’s global operations by 2030, from a 2019 baseline, the company said. The SPT is consistent with the company’s recently announced net zero 2040 goal.
Par Susan Kelly (26/03/2021)
Source : Meatingplace.com