Starbucks Corporation has closed an underwritten public offering of senior notes, including the first US Corporate Sustainability Bond.
The company will use the net proceeds from the offering of US$500 million in 2.450 per cent Senior Notes due 2026 to enhance its sustainability programs around coffee supply chain management through Eligible Sustainability Projects. This includes coffee purchases from suppliers verified by a third-party as complying with Starbucks ethical sourcing verification program of Coffee and Farmer Equity (CAFE) Practices, the development and operation of farmer support centres in coffee growing regions, as well as short and long term loans made through Starbucks Global Farmer Fund.
“Coffee is at the core of our business, and we intend to continue to finance initiatives that will make a positive social and environmental impact in our coffee supply chain as well as other areas across our business,” said Scott Maw, chief financial officer, Starbucks. “Issuing a bond focused on sustainable sourcing, demonstrates that sustainability is not just an add-on, but an integral part of Starbucks, including our strategy and finances.”
“The longevity of the coffee industry is directly linked to the social, economic and environmental conditions of coffee communities around the world,” said Craig Russell, executive vice president, Starbucks Global Coffee. “This new sustainability bond offers a way for investors to better understand the work we are doing to help ensure that there is a future for farmers and our industry.”
