US coffee major Starbucks has obtained a US$1 billion sustainability bond that it plans to use to support ethical sourcing and its Greener Retail initiative.
The bond is the largest of its type that the company has issued to date and follows two earlier sustainability bonds issued in 2016 and 2017.
A small part of the funds will support a new US$20 million equity investment in responsAbility Investments AG as part of Starbucks Global Farmer Fund, which supports coffee farmers and their communities
“We are very pleased to see that our new Sustainability Bond attracted significant investor interest and was oversubscribed,” said Patrick Grismer, CFO of Starbucks (shown here).
“The bond demonstrates Starbucks’ commitment to meaningful progress toward our aspiration of sustainable coffee, served sustainably. It also illustrates a trend toward heavier interest from investors in our socially and environmentally focused projects – in this case supporting coffee farmers and leading in green retail.”
The coffee that will be purchased will be verified by Coffee and Farmer Equity (CAFE) Practices. It will be put towards the continued development and operation of Farmer Support Centres and agronomy research and development centres in coffee-growing regions around the world; and be used for new and refinanced loans to coffee farmers made through Starbucks’ US$50 million Global Farmer Fund.