Global payments solutions company American Express is offering its inaugural $1 billion sustainability note, according to a prospectus on its website and filed with the SEC, with proceeds from the issuance funding green and social projects.*
The sustainability notes, maturing in 2029, form part of a $3.5 billion notes offering, which also includes a $2 billion 2024 fixed rate note, and a $500 million floating rate note.
The filing follows the recent publication of American Express’ sustainable financing framework, detailing eligible use of proceeds from sustainable finance issuances, as well as the processes to be followed for project evaluation and selection, management of proceeds, and reporting obligations. The framework has received a second party opinion (SPO) from Moody’s ESG Solutions.
The framework outlines the range of green and social projects that may be funded by the notes. Green categories include Circular Economy, Green Buildings, and Energy Efficiency and Renewable Energy, with projects including procuring an fabricating recycled materials for credit cards, retrofitting buildings, and investing in renewable energy power purchase agreements or on-site renewable energy projects.
Social categories include Socioeconomic Advancement & Empowerment, Access to Essential Services, and Affordable Housing. Examples of projects that may be funded under this category include supplier diversity programs, initiatives to drive consumer spending at small businesses, expanding access to financing products and economic opportunities by supporting businesses of underserved populations, and investing in funds providing affordable housing to low- and middle-income communities.
*update: American Express announced today that it has the bond offering.