Global media and communications company announced today its first green bond offering, raising $1 billion, with proceeds from the 10-year bond aimed at supporting the company’s environmental sustainability goals, including its target to be carbon neutral by 2035.
The offering follows the publication last month by Comcast of its Green Financing Framework, outlining eligible use of proceeds for green bond offerings, as well as the guidelines for project evaluation and selection, management of proceeds, and reporting obligations.
Eligible green investment categories under the framework include Renewable Energy, such as infrastructure for on-site renewable energy projects or long-term power purchase agreements; Energy Efficiency, including projects to minimize energy use in offices and operations, or to improve the energy efficiency of consumer equipment; Green Buildings, Campuses, Communities and Cities, such as the construction of buildings with third-party sustainability certifications; Clean Transportation, such as the purchase of electric vehicles or installation of EV charging infrastructure, and; Circular Economy Adapted Products, Production, Technologies, and Processes, including the use of sustainable materials in products, and reduction of plastic and e-waste.
Comcast announced its 2035 carbon neutrality goal in 2021. Recent climate-focused initiatives by the company include a long-term agreement with clean energy solutions supplier Constellation to source 250 MW of carbon-free solar electricity, and a pledge to cut the electricity consumed per unit of data in its network in half by 2030.
Sara Cronenwett, Senior Vice President of Corporate Strategy and Environmental Sustainability at Comcast, said:
“We’re excited to have offered investors the opportunity to join us as we scale clean energy technologies and other decarbonization strategies across our business. These investments bring great value to the broader community of Comcast shareholders, employees, and customers by helping to foster a cleaner, healthier environment.”
The company said that the deal was led by a consortium that included minority- and women-owned broker-dealers. Active bookrunners for the offering included service-disabled veteran-owned Academy Securities, Inc., African-American-owned Loop Capital Markets LLC, Hispanic-owned Samuel A. Ramirez & Company, Inc., and African-American- and women-owned Siebert Williams Shank & Co., LLC.
Jason Armstrong, Chief Financial Officer and Treasurer for Comcast Corporation, said:
“We’re pleased that our inaugural green bond offering was largely led and underwritten by four nationally recognized minority-, women-, and service-disabled veteran-owned investment banking firms with whom Comcast has a strong historical relationship. We value the role these firms play and are delighted to have partnered with them on such an important transaction for Comcast.”
BofA Securities acted as sole Green Structuring Agent, an Active Bookrunner, and a Coordinator for the minority- and women-owned broker-dealers.
Andrew Karp, head of Global Sustainable Banking Solutions Group at BofA Securities, Inc., said:
“The strong response from investors to Comcast’s inaugural green bond offering highlights the market’s positive view of the company and appetite for this type of security structure.”