Today, Johnson Controls (NYSE: JCI), the global leader for smart and sustainable buildings, announced the pricing of its first Green Bond offering of $625 million in ten-year notes. The net proceeds will support projects that focus on sustainability and support the Company’s 2025 Sustainability goals.
“Our products and services empower our customers and communities to consume less energy and conserve resources, which is why I believe there will be an enthusiastic response to this bond offering. We believe that the utilization of green bond financing further demonstrates that sustainability is at the heart of our vision and values,” said George Oliver, chairman and CEO.
This is the second sustainability driven financing project for Johnson Controls. In 2019, Johnson Controls became one of the first industrial companies to tie its senior revolving credit facilities to specific sustainability metrics in the U.S. syndicated loan market.
The eligible green projects in which Johnson Controls will invest are detailed in its Green Finance Framework, which is aligned to the four components of both the ICMA Green Bond Principles 2018 and the Green Loan Principles 2020. The positive environmental impact of eligible green projects are mapped to the United Nations Sustainable Development Goals.
Categories of eligible projects include:
- Eco-efficient and/or circular economy adapted products, production technologies and processes
- Green buildings
- Pollution prevention and control
- Sustainable water and wastewater management
- Clean transportation
- Renewable energy
Sustainalytics provided a second party opinion on Johnson Controls’ Green Finance Framework.
Johnson Controls’ 2025 sustainability goals include the following:
- 25% reduction in greenhouse gas emissions intensity
- 25% reduction in energy intensity
- 10% water reduction at water-stressed locations
- 25% reduction in recordable safety incidents
- Increase diverse supplier spend at a rate exceeding revenue growth
Tyco Fire & Security Finance, S.C.A., a subsidiary of the Company, is a co-issuer of the green bonds. The closing for the transaction is expected to occur on Sept. 11, 2020, subject to certain customary closing conditions.
BofA Securities, ING, Citigroup, US Bancorp, BBVA and TD Securities have served as joint book-running managers to facilitate the transaction. ING has served as the sole Green Structuring Advisor.
The Company’s green finance framework is available on the Company’s website.
The offering of the green bonds is being made pursuant to an effective shelf registration statement, prospectus and related prospectus supplement. Copies of the prospectus supplement and the base prospectus, may be obtained by contacting BofA Securities, Inc. toll-free at 1-800-294-1322; or ING Financial Markets LLC at 646-424-8972. Investors may also obtain these documents for free by visiting EDGAR on the Securities and Exchange Commission’s website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
Source: PR Newswire