Apple Going Green with Bond Sale

Published February 17, 2016 at 11:42 pm - No Comments

Apple green logo 490 x 210

In an innovative move to raise capital, technology leader, Apple Inc. has begun to offer “green bonds”. These bonds are considered “green” because the money raised is planned to be used to finance eco-friendly projects. In addition to using the money for general corporate purposes, Apple plans to invest in the use of renewable energy resources at their plants and stores while becoming more efficient across the company, using greener materials in their popular products, and conserving precious resources, according to its prospectus.

The bond positions Apple in a way that differentiates them from a number of other bonds in the market in an effort to attract the environmentally aware investors who want to invest in companies that are aligned with their values. While green bonds comprise a small piece of the total market, interest is growing as many investors look to add green securities to their portfolios.

Apple’s bond sale is the second largest of the year so far and the company hopes to raise $1.5 billion of the $12 billion dollars with their 7 year green bond. The worldwide green bond market experienced growth of $5 billion last year for a total of $42 billion. According to the Climate Bonds Initiative, the name recognition that comes with Apple’s bond sale will help the growth of green bonds to approach their goal of $100 billion in 2016.

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