Principal Financial Group® issued its first sustainability bond on August 16 in the amount of $600 million as part of the company’s commitment to integrating and advancing Environmental, Social, and Governance (ESG) practices and initiatives in its organization and operations.
“Principal® is committed to being sustainable in our actions and solutions, and intentional in how we’re making progress toward our purpose,” said Deanna Strable, executive vice president and chief financial officer for Principal Financial Group. “The issuance of a sustainability bond gives us an additional pathway to stimulate positive change in areas we believe we can have the greatest impact for the customers we serve and the communities where we work.”
Under the terms of a five-year funding agreement-backed notes (FABN) through Principal Life Global Funding II, Principal will reinforce its corporate responsibility commitments by allocating bond proceeds towards eligible green and social initiatives such as green buildings, renewable energy, energy efficiency, sustainable water practices, clean transportation, pollution prevention and control, living natural resources, financial inclusion, health and education services, affordable housing, and socioeconomic advancement and empowerment.
According to the Principal Sustainable Financing Framework, eligible assets may include existing or future investments that meet defined criteria to help advance United Nations Sustainable Development Goals (U.N. SDGs). A business is only eligible if 90% or more of its revenue is derived from activities and criteria that aligns with U.N. SDGs.
BNP Paribas Securities Corp. served as sole sustainability structuring agent and joint book runner with BofA Securities, Inc. and HSBC Securities (USA) Inc. for the sustainability bond, which drew the interest of over 60 investors.
More information about how Principal is advocating for and advancing ESG programs is available at principal.com/sustainability.