Energy Efficiency, Industrial, Sourcing Renewables - August 13, 2019
Owens Corning Issues $450M Green Bond
Owens Corning has completed the issuance of its inaugural green bond, This $450 million bond is payable over 10 years at a coupon rate of 3.95%. In conjunction with the bond, the company has committed to spend $445 million on eligible sustainability projects.
Owens Corning is the first U.S. industrial company to issue a green bond. According to a statement from the company, this step is “in keeping with its aspiration to be a net-positive company whose handprint is greater than its footprint.”
“Owens Corning is dedicated to running a sustainable enterprise that benefits both the environment and our shareholders,” Chief Executive Officer Brian Chambers said. “Our 20,000 employees around the world work every day on improving our products and processes to ensure that we are making the world a better place. It’s encouraging that so many investors see value in supporting our green efforts.”
The committed funds are being used to further the company’s work in renewable energy, energy efficiency, and eco-efficient and circular economy-adapted products, production technologies and processes. Eligible projects include:
- Long-term power purchase agreements for renewable energy, including investments in solar and wind power generation facilities.
- Investments to increase energy efficiency in internal projects and processes, particularly those that are energy-intensive.
- Investments in eco-efficient programs to substantially reduce waste or to increase recycling, such as by increasing the level of recycled material in our products.
Additionally, funds are being used for projects that benefit customers and consumers, through research and development of products that support the same categories. Eligible projects also include capital expenditures related to the manufacturing of insulation, which improves energy efficiency in buildings and industrial processes, and glass fiber and fabric used in wind turbine blades.
As outlined in the Green Bond Principles, the company will report on how the committed funds are spent and the progress it makes on the initiatives outlined in connection with the bond. Owens Corning will publish annual updates on the allocation of the committed funds throughout the term of the green bond until such funds have been fully allocated.