Apple Issues a Second Billion-Dollar Green Bond to Fund Renewable Energy

Apple is not only the first US technology company but also the first and largest US corporation to issue green bonds. The company’s green bond issue aims to reduce climate change hazards through the adoption of renewable sources of energy and driving its energy efficiency, usage of safer materials, and preservation of precious resources.

Now, according to a Bloomberg report, Apple has issued a $1 billion USD bond on Tuesday with special rules: the proceeds it raises must be used on eco-friendly projects.

This is the second so-called “green bond” that Apple has issued. Last year, Apple raised $1.5 billion USD in a green bond sale. Apple is now the largest issuer of dollar-denominated green bonds.

To qualify as a green bond, Apple has to pledge to use the proceeds on items such as renewable energy projects, green buildings, and resource conservation efforts. Combined with Apple’s $1.5 billion USD green bond issued last year, the new debt will make Apple the single largest U.S. dollar-denominated issuer in the market niche.

The proceeds from the bonds will be used for several projects, including new and ongoing solar and wind farms, new green buildings, and a program that seeks to make Apple products using only recycled or renewable materials.

The idea is to appeal to investors who want to help improve the environment. Globally, the green bond market should exceed $200 billion USD this year, more than double the $93 billion USD in issued in 2016, Moody’s Investors Service said in January. Some new mutual funds, like the Mirova Global Green Bond fund, are investing almost entirely in the green securities.

The bond offering comes days after President Trump announced he would pull out of the Paris climate accord, a move Apple opposed.

An excerpt of Cook’s internal memo to Apple employees:

Climate change is real and we all share a responsibility to fight it. I want to reassure you that today’s developments will have no impact on Apple’s efforts to protect the environment. We power nearly all of our operations with renewable energy, which we believe is an example of something that’s good for our planet and makes good business sense as well.