CHICAGO — Mondelez International Holdings Netherlands BV, a wholly-owned subsidiary of Mondelez International, Inc., on Sept. 3 priced its first green bond. Valued at €2 billion ($2.375 billion), it is the largest ever green bond in the packaged foods and consumer goods industry, according to Mondelez.
The green bond consisted of €650 million of 0.250% notes due September 2029, €650 million of 0.625% notes due September 2032 and €700 million of 1.250% notes due September 2041. The notes are fully guaranteed by Mondelez International, Inc.
“I am proud to announce that we successfully placed our first green bond offering — the largest issuance to date within our industry,” said Dirk Van de Put, chairman and chief executive officer. “Our purpose — to empower people to snack right — guides our company and the impact we seek to have on people and the planet. We remain laser focused on building a more sustainable snacking company, and this green bond issuance is an important testament to our commitment to advancing our ESG agenda.”
Mondelez said it plans to use net proceeds from the green bond offering to fund projects that further the company’s commitment to more sustainably sourced ingredients, reducing waste in packaging, and tackling climate change. The eligible project categories — environmental management of living natural resources and land use, more sustainable water and wastewater management, pollution prevention and control, renewable energy, energy efficiency, and clean transportation — are designed to protect and regenerate the environment and are in alignment with the United Nations Sustainable Development Goals, Mondelez said.
“Snacking Made Right is part of everything we do at Mondelez International,” said Chris McGrath, vice president and chief of global impact and sustainability at Mondelez. “Now more than ever is the time for companies to do what’s right and drive more sustainable business growth, and ESG investment is a critical element of that mission. This offering reflects our commitment to doing business the right way to reduce our impact on the environment, have a positive influence on society, and advance sector-wide lasting change. We look forward to working with our stakeholders to continue advancing these initiatives.”
Purchase, NY-based PepsiCo, Inc. issued a $1 billion green bond in October 2019. By October 2020, the company said it had put nearly $450 million of the green bond to use in support of packaging, decarbonization and water. Funds also have been allocated toward advancing several of the UN’s Sustainable Development Goals, PepsiCo said.