Global payment technology company Mastercard announced today the pricing of a $600 million sustainability bond offering. Proceeds from the bond will support the company’s initiatives towards maximizing carbon reduction, supporting environmental choices for customers, and fostering inclusive growth.
The 10-year bond will pay interest semi-annually at a fixed rate of 1.90%, and Mastercard expects to allocate the net proceeds to eligible initiatives within 3 years of the transaction.
The new sustainability bond is being issued under Mastercard’s newly released Sustainable Financing Framework, which outlines eligible categories for proceeds, including 7 green categories and 4 social categories. Green eligible categories under the framework include Green Buildings, Energy Efficiency, Renewable Energy, Eco-efficient and/or Circular Economy Adapted Products, Production Technologies and Processes, Pollution Prevention and Control, Environmentally Sustainable Management of Living Natural Resources and Land Use, and Climate Change Adaptation. Social categories include Mastercard Impact Fund, COVID-19 Response, In Solidarity (relating to programs and initiatives that support underserved, excluded and/or marginalized populations), and Commercially Sustainable Social Impact. The framework has received a second party opinion from ESG research and ratings provider Sustainalytics.
Michael Miebach, Mastercard Chief Executive Officer, said:
“No matter where you work or live, we are all in the sustainability business; the future of people, our planet and the economy are inextricably linked. To deliver positive social and environmental impact at scale companies need to invest in the technology, insights, and partnerships to make programs commercially sustainable for the long term. Our Sustainability Bond will support both social and green initiatives to drive inclusive and sustainable growth for our company and the communities we serve around the world.”