Walmart issues inaugural $2bn green bond to highlight sustainability commitments

Walmart Inc has successfully priced its first green bond, stating that the net proceeds from the US$2 billion sales will be used to fund present and future projects that will help the business meet its sustainability goals.

Walmart plans to invest the net proceeds of the $2 billion green bond into a portfolio of Eligible Green Investments that meet certain criteria in renewable energy, high-performance buildings, sustainable transportation, zero waste and circular economy, water stewardship, and habitat restoration and conservation over the next few years.

On an annual basis, until an amount equivalent to the net proceeds of the green bond has been distributed, Walmart will produce a public report with information on allocation to and anticipated impact of the Eligible Green Investments.

The company’s external auditor EY will provide an assurance report on each allocation report, and an outside consultant with recognized expertise in environmental, social, and governance research and analysis has issued and made publicly available, a second party opinion in respect of the alignment of eligibility criteria of the type described above with the Green Bond Principles.

The green bond is part of a $7 billion package of new senior unsecured notes that the corporation successfully priced over five, seven, one, two, twenty, and thirty years.

Four nationally recognized minority- and women-owned firms led the green bond as active bookrunners: African-American and service-disabled veteran-owned AmeriVet Securities, Inc, women-owned C. King & Associates, Inc, Hispanic-owned Samuel A Ramirez & Company, In., and African-American and women-owned Siebert Williams Shank & Co, LLC.

Active bookrunners on the green bond included BofA Securities, Inc, Citigroup Global Markets, Inc, and Morgan Stanley & Co LLC. The Green Structuring Agent was BofA Securities, Inc, and the Diversity and Inclusion Coordinator was Citigroup Global Markets Inc.