Commercial, Energy Efficiency, GHG Emissions, Finance, Sourcing Renewables - March 10, 2021
Aflac issues $400 million sustainability bond
Aflac Incorporated announced March 8 that it has issued its first sustainability bond at $400 million to finance existing or future investments in environmental or social projects.
The bond was issued at a rate of 1.125% due in 2026. The insurance provider will use an amount at least equivalent to the net proceeds from the offering for projects that meet eligibility criteria under its Sustainability Framework within eight categories: renewable energy, energy efficiency, green buildings, clean transportation, sustainable water management, pollution prevention and control, socio-economic advancement and empowerment; and communities.
“This inaugural offering reinforces our commitment to advancing the priorities we have lived and breathed for decades as a compassionate company and good corporate citizen,” Frederick J. Crawford, president and COO, said in a statement. “Being true to what our company stands for is just as important as the products and services we provide. This approach creates a positive cycle that starts with the building of enterprise value, then supporting a further commitment of resources toward our sustainability efforts, perpetuating our ability to make a difference. Our work to date has paved the way for what we believe is helping to make a direct and measurable positive impact on society and the environment. As we strive to deliver value to the people who depend upon us, including policyholders, shareholders, bondholders, employees and the communities in which we operate, we will continue to identify ways to advance the approach that is known as The Aflac Way.”
Aflac’s sustainability target projects align and incorporate the priorities set forth in the UN’s Sustainable Development Goals. The company said it believes the integrating ESG factors into its business model leads to better investments and improves its risk and return profile, while making a positive financial and social impact on its stakeholders.