Aflac Launches its First Sustainability Bond, Proceeds to go to Environmental, Social Projects
Insurance company Aflac announced that it has issued its inaugural sustainability bond, in a $400 million principal amount offering of 1.125% senior notes due 2026. Proceeds from the offering will support projects which provide environmental or social benefits, including clean energy and socioeconomic advancement initiatives.
The new bond was issued under Aflac’s recently released Sustainability Bond Framework, which outlines eligible areas for use of proceeds, including six ‘green assets’ categories, and two ‘social assets’ categories. Eligible green assets include renewable energy, energy efficiency, green buildings, clean transportation, sustainable water management, and pollution prevention and control. Social categories include socio-economic advancement and empowerment, and communities. According to the framework, each of Aflac’s eligible categories has been aligned with the relevant UN Sustainable Development Goals (SDGs). The sustainability bond framework has received a second party opinion from ESG research and ratings provider Sustainalytics.
Aflac Incorporated President and Chief Operating Officer Frederick J. Crawford said:
“This inaugural offering reinforces our commitment to advancing the priorities we have lived and breathed for decades as a compassionate company and good corporate citizen. Being true to what our company stands for is just as important as the products and services we provide. This approach creates a positive cycle that starts with the building of enterprise value, then supporting a further commitment of resources toward our sustainability efforts, perpetuating our ability to make a difference. Our work to date has paved the way for what we believe is helping to make a direct and measurable positive impact on society and the environment. As we strive to deliver value to the people who depend upon us, including policyholders, shareholders, bondholders, employees and the communities in which we operate, we will continue to identify ways to advance the approach that is known as The Aflac Way.”