Amazon.com Inc. has issued its first sustainability bond, aiming to raise $1 billion to support environment and social projects as investors clamor for more sustainability bonds to “green up” their portfolios.
The Seattle-based e-commerce giant stated on Monday that the bond proceeds will fund renewable energy, affordable housing, cutting resources used by buildings and supporting diminished groups entering the technology workforce via training. Investors oversubscribed to the sustainability bond, which matures in two years and yields 0.257%.
Amazon plans for net-zero greenhouse-gas emissions across its direct and indirect ventures by 2040 and has rallied other large companies to target the same year.
The bond doesn’t have special terms but Amazon will use the net profits as soon as possible for green or social projects, though a breakdown of funding for each project isn’t yet available. Down the road, companies often provide an update on how funds from green or sustainable bonds were used.