Apple issues second US$1 billion green bond for solar, wind and energy storage

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Following Tuesday's issuance, Apple will be the biggest issuer of green bonds pegged to the US dollar. Source: Flickr/Sabin Paul Croce

Technology conglomerate Apple Inc. has issued its second green bond valued at US$1 billion, in the wake of president Trump withdrawing the US from the Paris climate agreement.

Last year, Apple issued the largest green bond ever sold by a US company to the tune of US$1.5 billion to pursue renewable energy and energy efficiency. Following Tuesday's issuance, Apple will be the biggest issuer of green bonds pegged to the US dollar.

Since then, the iPhone manufacturer has achieved 96% of its worldwide energy coming from renewable sources and also has pledged to reach 100% by encouraging its supply chain to also make the transition.

The new green bond is set to reach that 100% goal and comes just two weeks after the federal announcement that the US would no longer be a part of the historic climate accord.

“Leadership from the business community is essential to address the threat of climate change,” Lisa Jackson, Apple’s vice president of environment, policy and social initiatives said in the statement. “The bond will support Apple’s ongoing work to lower greenhouse gas emissions, drive renewable energy investment, and conserve precious resources. We're proud to offer investors another opportunity to join us in this important work.”

Undeterred, the company was among those that signed an open letter pledging to continue supporting efforts to meet the Paris agreement, which aims to keep greenhouse gas (GHG) emissions down below 2005 levels and keep global temperature rises “well below” 2°C.

Bond use

According to an SEC filing, the bond will mature in 2026 and will consist of unsecured senior indebtedness and will rank equally with each other. The sale was arranged by Bank of America, Goldman Sachs and JPMorgan.

The net proceeds from the sale of the bond are to ensure Apple “can make the most environmentally positive impact”; and specifically, will be used to pioneer the use of “greener materials” Apple products and processes, energy-efficient buildings as well as renewable energy projects including solar, wind and energy storage.

Last year, Apple allocated US$442 million to 16 different projects from renewable energy to recycling from its first bond offer; including a 200MW solar PV project in Nevada in collaboration with NV Energy that will help power its Reno data centre and a 50MW solar plant in Arizona. In June 2016, Apple announced plans to sell excess electricity generated by solar panels on the roof of its new Cupertino, California HQ and created a subsidiary to sell power.

According to Bloomberg, future plans include solar and hydroelectric plants in Oregon, North Carolina, Nevada, Arizona and California; including a US$850 million 130MW solar farm near San Francisco by 2042.

6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.

Read Next

July 27, 2021
Greek industrial group Mytilineos recorded a net profit of €77 million (US$91 million) in H1 2021, however the firm’s renewables division witnessed a drop in revenue year-on-year.
July 27, 2021
Canadian Solar has closed a BRL500 million (US$100 million) financing facility to develop a Brazilian solar portfolio claimed to be the country’s largest, while also giving it the option to hold built solar assets for longer.
July 27, 2021
More than 140 business leaders have urged the US Congress to pass President Joe Biden’s bipartisan infrastructure bill, telling lawmakers that the bill is “desperately needed” to renew the nation’s infrastructure
July 27, 2021
A round-up of the latest news from the US solar market, featuring Vision Solar’s commitment to hire “hundreds” of sales staff as part of a two-state expansion, Recurrent Energy’s sale of two major assets in Texas and news of 8minute Solar Energy strengthening its legal team.
July 27, 2021
Tesla reported retrofit solar installations of 85MW in Q2 2021, cementing its recovery from a worst-ever performance in the corresponding period last year.
July 26, 2021
A solar-wind-energy storage hybrid project is to power a Madagascan mine after Rio Tinto signed a power purchase agreement with independent power producer CrossBoundary Energy.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021