Amgen issues maiden US$750 million green bond

USA –Amgen has announced the issuance of its first US$750 million green bond, with a semi-annual coupon of 3% and a maturity date of 2029, to advance the environmental goals outlined in Amgen’s environmental, social, and governance (ESG) framework.

Companies use green bond to raise money for specific projects deemed environmentally worthy.

The green bond is part of a US$4 billion underwritten public offering of senior notes issued on February 22, 2022, and the proceeds from the green bond will be used in accordance with the Company’s Green Financing Framework.

S&P Global Ratings provided a second party opinion on the Framework, reporting that it is consistent with the International Capital Market Association’s Green Bond Principles (2021).

Amgen has implemented environmentally focused projects since 2007, resulting in a 33% reduction in carbon emissions, a 30% reduction in water use, and a 28% reduction in waste disposed.

These reductions were achieved despite the Company increasing production capacity, expanding its presence to approximately 100 countries, and significantly increasing revenues.

Amgen announced plans in January 2021 to achieve carbon neutrality in its operations by 2027, while also reducing water use by 40% and waste disposal by 75%.

“As a science-based company, we understand the profound impact that climate change is having on human health around the world,” said Judy Brown, senior vice president, Corporate Affairs at Amgen.

“This green bond will fund specific projects across our company that are intended to mitigate our impact on the environment.”

Amgen intends to allocate, in whole or in part, an amount equal to the net proceeds from the Green Financing to one or more new or existing eligible projects in the following categories: green buildings, eco-efficient operations and processes, eco-efficient products, renewable energy, and clean transportation.

Amgen will publish an annual allocation report for each Amgen Green Financing until the full allocation of the proceeds, and may publish an update of any such report in the event of any material changes, until the relevant maturity date.

Amgen will report estimated quantitative impact metrics and provide qualitative case studies on eligible projects where feasible and subject to any confidentiality considerations.

Also, Teva Pharmaceutical Industries Ltd., one of the world’s largest generic-drug manufacturers, sold a record US$5 billion in bonds tied to environmental, social, and governance goals in November last year.

The company’s targets include a 25% reduction in direct and indirect greenhouse emissions by 2025, with 2019 serving as the baseline year.

According to its bond prospectus, it also aims to increase access to medicines “donated or tendered” to low and middle-income countries by 150% compared to doses made available in 2020.

Liked this article? Sign up to receive our regular email newsletters, focused on Africa and World’s healthcare industry, directly into your inbox. SUBSCRIBE HERE