The market for green bonds is growing as companies and governments raise funds to cut fossil fuel use, embracing the principles of The Paris Agreement on climate change. Global sales of the securities have already surpassed last year’s $135 billion record and Moody’s Investors Service has increased its forecast for issuance.
Apple’s six-year bonds are yielding 15 basis points over mid-swaps while the 12-year securities carry a premium of 30 basis points. The offering is one of the largest on record in Europe’s corporate green bond market, based on data compiled by Bloomberg. French utility Engie SA printed 2.5 billion euros of green bonds in two tranches back in May 2014.
Apple has already raised $2.5 billion from previous sales of green bonds in U.S. dollars and has shown commitment to improving its environmental impact.
MacDailyNews Take: Yet again and smartly so, Apple is taking advantage of the cheap bond market.
Find out more about Apple and the environment here.