(Credit: Pixabay)Aflac Incorporated announced today that it has closed its first sustainability bond. The company issued $400 million principal amount of 1.125% senior notes due 2026.
Aflac says it intends to allocate an amount at least equivalent to the net proceeds from the offering exclusively to existing or future investments in, or financing of, projects which provide environmental or social benefits, meeting eligibility criteria under the Aflac Incorporated Sustainability Framework within eight categories:
-- energy efficiency
-- green buildings
-- clean transportation
-- sustainable water management
-- pollution prevention and control
-- socio-economic advancement and empowerment
-- communities
These categories also align with and incorporate the priorities set forth in the Sustainable Development Goals adopted by all United Nations Member States in 2015.
Aflac believes this approach leads to better decisions with respect to the sustainability of an investment and its risk and return profile, while helping to make a positive financial and social impact on all of Aflac's stakeholders.
Sustainalytics, a leading global independent provider of ESG and corporate governance research and ratings, has reviewed and verified that Aflac Incorporated's Sustainability Bond Framework aligns with the Sustainability Bond Guidelines 2018, Green Bond Principles 2018, and Social Bond Principles 2020, as published by the International Capital Market Association.
