Walmart raised $2bn via a debut 10Y green bond at a yield of 1.839%, 25bp inside initial guidance of T+75bp area. The green bond was part of a wider $7bn five-tranche issuance and comes amid efforts to reduce carbon emissions, boost recycling and clean up its supply chain, as per Bloomberg. Walmart intends to achieve a target of zero emissions by 2040 and also aims for a 1bn metric ton cut in emissions from its supply chain by 2030. “It certainly seems like they’re serious about taking a sustainability leadership role within the retail space…I don’t know how other retailers will be able to avoid making similar commitments and changes”, said James Rich, a senior portfolio manager at Aegon Asset Management.
The green issuance by Walmart is the largest by a US non-financial corporate and surpasses NextEra Energy Capital’s $1.5bn deal in June 2021 and Apple’s $1.5bn deal in February 2016.
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