Apple raises €2bn in green bonds

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Apple raises €2bn in green bonds (FT)

  • In one of Europe’s largest sustainable debt deals, Apple has priced its first euro-denominated green bonds, issuing EUR2bn of 6- and 12-year debt at slightly lower borrowing costs than implied by previously issued Apple debt.
  • The proceeds are set to be used to develop more energy efficient and recyclable products, as well as to cut the company’s supplier’s carbon emissions. Apple is expected to publish an annual public report on how funds are being used and how much carbon is approximately being saved as a result.
  • The company claims to be the largest US corporate issuer of green bonds, having previously raised US$1bn in 2017 and Us$1.5bn in 2016.

Analysis and Comments

  • The ‘greenwashing debate’ is part of most ESG-related (investment) products at the moment, but currently seems to be very focussed on green/sustainable bonds – particularly those issued by companies that contribute significantly to emissions.
  • Green bonds have actually been around for a lot longer than most may realise, with the first ones issued in 2007, although it took them eight years to reach a cumulative issuance of US$100bn.
  • Now, the market has recently breached the US$1tn mark (according to BNEF), reflecting growing momentum, with new varieties being issued by corporates across industries – some of which are rightly raising eyebrows, such as, for example, a green bond issued by shipowner Teekay Shuttle Tankers meant for the production of four new fuel-efficient tankers, or the green bonds issued by telecoms group Verizon earlier this year to fund 5G expansion.
  • However, aside from the fact that there is no standardised framework for measuring performance, the green bond market also has the added issue of being highly fragmented, resulting in liquidity being quite thin.
  • Perhaps not surprising therefore that the recently proposed idea of ‘green quantitative easing’ is again a highly controversial and hotly debated idea.
  • A lot probably hinges on the EU-wide definition of green assets which may help shed light on and separate the different ‘shades’ of green investments we are currently seeing.


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As much as I want to hate on these big companies who have TERRIBLE fair trade and environmental practices, it matters when they make a shift and that needs acknowledging.


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