Adidas €500 Million Sustainability Bond Offering More Than 5x Oversubscribed
Sporting goods company adidas announced the successful placement of its inaugural sustainability bond, raising €500 million. The company stated that the issue met very strong demand, with the offering more than five times oversubscribed. The bond was issued with a term of 8 years and a coupon of 0.00%.
adidas recently introduced its sustainability bond framework, outlining eligible projects that may be funded with the bond offering’s proceeds, including investments into more sustainable materials and processes as well as projects that positively impact communities. The company stated that it will use funds raised from sustainability bonds for purchases of recycled materials for sustainably sourced products, investments into renewable energy production and energy-efficient buildings, as well as various initiatives to create lasting change for underrepresented communities. The sustainability bond framework has been validated by a second-party opinion from Sustainalytics, according to the company.
Harm Ohlmeyer, CFO at adidas, said:
“Following the first-time bond placements as an investment-grade-rated issuer earlier this month, today’s successful sustainability bond offering marks another milestone for our company. The proceeds will help fund environmental as well as social initiatives at adidas as we are committed to keep building on our industry leadership in the area of sustainability.”