Starbucks goes to the bond market—to raise money for sustainability

Starbucks Corp. has turned to the bond market to fund its sustainable-coffee efforts.



The chain issued a $500 million U.S. corporate sustainability bond to fund projtects that will support ethical coffee sourcing.



The 10-year, 2.45 percent senior notes, due 2026, will fund programs that ensure coffee is grown and distributed in a way that can be maintained over the long run, such as providing fair pay for workers and protection for wildlife.



“Coffee is at the core of our business, and we intend to continue to finance initiatives that will make a positive social and environmental impact in our coffee supply chain as well as other areas across our business,” said Scott Maw, CFO. Starbucks.“Issuing a bond focused on sustainable sourcing, demonstrates that sustainability is not just an add-on, but an integral part of Starbucks, including our strategy and finances.”



The coffee giant said it would publish annual updates of the allocation of the proceeds throughout the term of the sustainability bond until the proceeds have been fully allocated to projects meeting the eligibility criteria.