Apple Issues Massive Green Bond Package

Wind Turbines in woods

By Arman Kazemi

February 25, 2016

Apple has issued a $1.5-billion green bond package, the largest ever offered by a corporation, to finance clean energy initiatives across its global facilities.

The iPhone company plans to use the proceeds to fund renewable energy, energy storage and efficiency, water recycling and conservation efforts.

The $1.5-billion package is part of a larger sale of $10 to $12 billion in new bonds.

Bonds are typically seen as a low-risk investment, and green bonds have been gaining popularity in recent years.

Valued at $42 billion last year – up from over $37 billion in 2014 – the green bond market offers investors a debt instrument to divert capital into portfolios with specifically climate-friendly outcomes.

While the bond market is valued at $100 trillion globally, green bonds are on the rise, specifically as institutions such as university endowments and pension funds look to diversify their portfolios, with some estimating green bonds to value upwards of $1 trillion by 2020.

In Canada, too, green bonds have seen a sharp rise since first being introduced in 2014, reaching $1.4 billion by the end of the year thanks largely to debt packages from TD Bank and the government of Ontario.

Indeed, Ontario has recently announced its second green bond as demand for its initial offering was five times oversubscribed. And earlier this month, the online investment platform CoPower offered its first green bond to individual investors.

For its part, Apple’s new green bonds “will allow investors to show they will put their money where their hearts and concerns are," Lisa Jackson, Apple’s vice president of environment, policy and social initiatives, toldReuters.