Prudential unveils first $500m green bond in sustainability push

Prudential Financial is issuing its first green bond as part of the company’s commitment to sustainable investments aimed at delivering a positive environmental impact.

The company intends to issue a green bond with a principal amount of $500 million. The bond was offered alongside an additional $1 billion of Prudential debt on March 5.

Prudential said the net proceeds from the green bond will be allocated exclusively to existing or future investments which provide environmental benefits including reduced greenhouse gas emissions and improved resource efficiency.

The eligible categories for the use of the net proceeds align with the United Nations Sustainable Development Goals (SDGs). These include renewable energy, green buildings, environmentally sustainable management of living natural resources and land use, energy efficiency, clean transport, sustainable water and wastewater management, and pollution prevention and control.

Net proceeds from the $1 billion of Prudential debt issued alongside the green bond are intended for general corporate purposes, which may include refinancing portions of the company’s debt maturing through 2021.

“As a purpose-driven company, our commitment to generating sustainable value for our stakeholders goes hand in hand with our commitment to protecting the environment,” said Charles Lowrey, chairman and CEO of Prudential. “Our green bond is an important next step in our efforts to ensure that environmental stewardship is reflected across Prudential’s business activities and operations.”

Nandini Mongia, treasurer of Prudential, added: “At a time when ESG is becoming an increasingly important area of focus in global markets, we are very pleased to underscore our commitment to the environment with an offering that meets the goals and criteria of investors seeking sustainable opportunities.”