Published by Todd Bush on March 6, 2023
First multi-currency same day execution of green labeled bonds from an investment grade U.S. issuer (EUR & USD)
First U.S. chemical company to issue a green bond with green and blue hydrogen as an eligible expenditure category
LEHIGH VALLEY, Pa., March 6, 2023 /PRNewswire/ -- Air Products (NYSE:APD) has successfully issued its registered green bond offerings of $600 million aggregate principal amount of U.S. dollar-denominated fixed-rate notes and €700 million aggregate principal amount of euro-denominated fixed-rate notes. The green bond issuances consisted of the following tranches:
U.S. Dollar-Denominated Offering | Euro-Denominated Offering |
---|---|
$600 million of 4.80% Notes due 2033 | €700 million of 4.00% Notes due 2035 |
"Put simply, sustainability is our growth strategy at Air Products," said Seifi Ghasemi, Chairman, President and CEO. "We want to grow responsibly through sustainability-driven opportunities that benefit our customers and our world. Importantly, our multi-currency green bond offerings make us the first U.S. chemical company to issue with green and blue hydrogen as an eligible expenditure category, further reinforcing our leading position advancing the energy transition through hydrogen for zero-emission transportation and industrial decarbonization."
Air Products intends to use the net proceeds from the notes offerings to finance or refinance, in whole or in part, one or more Eligible Projects (as defined in the applicable prospectus supplement), including:
expenditures and investments related to pollution prevention and control–green and blue hydrogen and green and blue ammonia;
expenditures in renewable energy; and
expenditures and investments related to sustainable aviation fuel.
Pending full allocation of the net proceeds to such Eligible Projects, Air Products may hold and/or invest the balance of such net proceeds not yet allocated, in the Company's discretion, in its Treasury portfolio (in cash, cash equivalents, money market funds, etc.) in line with its Treasury policies or use them to repay a portion of outstanding indebtedness.
Morningstar Sustainalytics, a leading global provider of environmental, social, and governance (ESG) research and ratings, has completed and published a Second Party Opinion (SPO) on Air Products' green finance framework. The firm reviewed Air Products' green finance framework and determined that the planned use of proceeds is consistent with Air Products' sustainability strategy. Sustainalytics' SPO offers investors additional insight into the alignment of Air Products' green finance framework with the Green Bond Principles.
Air Products will publish annual updates on the allocation of the proceeds until the proceeds have been fully allocated to projects meeting the eligibility criteria. These updates will be reported publicly on Air Products' website at www.airproducts.com and may include additional descriptions of select projects, and, where possible, their environmental and/or social impacts.
The Company's green finance framework and Sustainalytics' SPO can be accessed from Air Products' Sustainability website.
In March 2021, Air Products was the first major U.S. chemical company to incorporate sustainability-linked ESG-related metrics into its $2.75 billion syndicated revolving credit facility.
>> In Company Spotlight: Air Products & Chemicals Inc.
Air Products (NYSE:APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets. The Company has two growth pillars driven by sustainability. Air Products' core business provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food. The Company also develops, engineers, builds, owns and operates some of the world's largest industrial gas and carbon-capture projects, supplying world-scale clean hydrogen for global transportation, industrial markets, and the broader energy transition. Additionally, Air Products is the world leader in the supply of liquefied natural gas process technology and equipment, and globally provides turbomachinery, membrane systems and cryogenic containers.
The Company had fiscal 2022 sales of $12.7 billion from operations in over 50 countries and has a current market capitalization of approximately $65 billion. More than 21,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and reimagine what's possible to address the challenges facing customers, communities, and the world. For more information, visit www.airproducts.com or follow us on LinkedIn, Twitter, Facebook or Instagram.
SOURCE Air Products
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