Finance - May 12, 2021
Kellogg Company Prices Its First Sustainability Bond
Kellogg Company has announced its pricing of a EUR 300 million 8-year Sustainability Bond. The food company’s inaugural sustainability bond, this bond has an interest coupon of 0.50% per annum.
Kellogg will use an amount equal to the net proceeds to finance and refinance renewable energy, energy efficiency, and green building projects.
"Sustainability is an enabler to balanced growth," said Steve Cahillane, Kellogg's Chairman and Chief Executive Officer, in a statement. "It supports our bottom line through cost savings initiatives and risk mitigation, while supporting our commercial strategies to deliver topline growth."
Along with the new bond, Kellogg has also published its Sustainability Bond Framework. This agenda helps the company use sustainable capital markets to finance or refinance low-carbon initiatives.
"Kellogg has always been a purpose-driven organization – it's in our DNA," added Cahillane. "Our founder, W.K. Kellogg, was an early conservationist, a leading philanthropist and an original wellbeing visionary. With this legacy, we've inherited his commitment."
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