Walmart breaks green-bond record with $2b debut sale

Bloomberg

Walmart Inc made its green bond market debut with a $2 billion offering, the largest ever from a US corporation, according to data compiled by Bloomberg.
The retail giant’s inaugural sustainable debt issuance comes amid efforts to reduce carbon emissions, boost recycling and clean up its supply chain. The deal surpasses NextEra Energy Capital’s $1.5 billion June sale, which matched the prior record from Apple Inc in 2016.
Walmart’s $2 billion 10-year green issuance is part of a five-tranche, $7 billion sale to help fund a tender offer as well as a range of environmental efforts. They include solar and wind projects, energy efficient refrigeration, electric vehicles and waste reduction, according to its green financing framework. Walmart has a target of achieving zero emissions by 2040 and also aims for a 1 billion metric ton cut in emissions from its supply chain by 2030.
“It certainly seems like they’re serious about taking a sustainability leadership role within the retail space,” James Rich, a senior portfolio manager at Aegon Asset Management, said via email. “I don’t know how other retailers will be able to avoid making similar commitments and changes.”
Amazon.com Inc sold debut bonds for environmental, social and governance projects in May, while Alibaba Group Holding Ltd raised its first sustainable debt in February.
The bond yields 50 basis points more than similar-maturity Treasuries, according to a person familiar with the matter, after initial price talk of around 75 basis points.