The company is selling bonds in two parts through its wholly owned subsidiary Dow Chemical Co. — Bloomberg
NEW YORK: Dow Inc, a maker of plastics for packaging, is raising US$1.25bil in its first-ever green-bond offering, as it looks to reduce its carbon emissions and plastic waste.
It is selling bonds in two parts through its wholly owned subsidiary Dow Chemical Co, according to a person with knowledge of the matter.
The longest portion of the offering, a 30-year security, will yield 1.3 percentage points above Treasuries, after initial talks in the area of 1.6 percentage points, said the person, who asked not to be identified as the details are private.
Bank of America Corp, Citigroup Inc, HSBC Holdings Plc, ING Groep and SMBC Nikko Securities America Inc are managing the bond sale, the person said.
Proceeds from such offerings will be used to finance or refinance a range of eligible projects, including energy efficiency, renewable energy, decarbonisation and initiatives aimed at ending plastic pollution, according to its green financing framework.
The projects also include the world’s first net-zero ethylene cracker in Fort Saskatchewan, Alberta, Dow representative Rachelle Schikorra said in an emailed statement.
“Our industry’s path to net-zero involves significant capital expenditure investments and a wide set of technologies,” said Schikorra.
“Green financing allows our investors to participate in the implementation of Dow’s sustainability strategy, focused on decarbonising and building a circular economy.”
Chemical companies are under pressure to address plastic waste that clogs oceans, damaging wildlife and ecosystems around the world.
Dow aims to be carbon-neutral by 2050, and plans to invest approximately US$1bil annually to drive both growth and decarbonisation of its manufacturing assets, according to the framework. — Bloomberg
