Apple Inc. is joining Europe’s booming market for green bonds, with its first euro-denominated debt offering, more than two years after its last environmentally-friendly debt issuance in the US.
The Cupertino, California-based iPhone maker plans to sell six and 12-year fixed-rate tranches on Thursday, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. It will use proceeds to reduce its carbon footprint, use greener materials in its products and conserve resources.
There are no details yet on the size of the total offer. Apple’s six-year bonds are expected to yield about 45 basis points over mid-swaps while the 12-year securities will have a premium of about 60 basis points, the person said.
Apple has already raised $2.5 billion from previous sales of green bonds in US dollars and has shown commitment to improving its environmental impact. Last year the company reached the goal of powering all its sites worldwide with clean energy.
Global sales of green bonds have already surpassed last year’s $135 billion record as companies and governments raise funds to cut fossil fuel use, embracing the principles of The Paris Agreement on climate change.
Supply of green euro-denominated corporate bonds already exceeds 50 billion euros in 2019, towering above last year’s record of 32 billion euros, based on data compiled by Bloomberg.