Coca-Cola FEMSA announced the placement of its first green bond in the international capital markets for US$ 705 million maturing in 2032The company expects to allocate an equivalent amount of the proceeds to finance or refinance specific green projects in areas related to climate change, water care, and the circular economy. The company expects to allocate an amount equivalent to the proceeds of the issue to finance or refinance specific green projects in areas related to climate change, water conservation and circular economy.
The transaction was widely participated in by investment grade investors, confirming Coca-Cola FEMSA's financial discipline, strong credit profile and commitment to sustainability.
"This green bonus is consistent with our goal of refreshing our consumers anytime, anywhere, in any way. sustainablewhile we continue to generate economic value and making a positive contribution to society and the environment. We expect that this transaction will enable us to achieve our environmental goals and contribute to the United Nations Sustainable Development Goals." he commented John Santa Maria OtazuaChief Executive Officer of Coca-Cola FEMSA.
The company expects to allocate an amount equivalent to the proceeds of the issuance to finance or refinance specific green projects in the following areas:
- Climate changeOn June 11, 2020, Coca-Cola FEMSA became the first Mexican company to obtain approval from the global Science Based Targets (SBTi) initiative for its greenhouse gas reduction goals, adhering to the framework established by the Paris Agreement to avoid climate change by seeking to limit the increase in global temperature to well below 2°C above pre-industrial levels. The company plans to achieve its commitment by 2030 with a series of specific projects that are expected to enable it to achieve its plan to reduce its greenhouse gas emissions by 28% compared to 2015.
- Water careThe company continually seeks opportunities to make efficient use of water and protect water resources. With a baseline water use rate of 1.52 liters of water per liter of beverage produced in 2019, the Company is committed to returning the same amount of water it uses in its beverage production through initiatives such as the Latin American Water Fund Alliance and local partnerships.
- Circular economyAs part of the "A World Without Waste" initiative, Coca-Cola FEMSA has committed to use 50% of recycled resin in its PET bottles and to collect 100% of containers placed on the market by 2030. In accordance with the Ellen MacArthur Foundation's Global Agreement for the New Plastics Economy, the Company is working to close the bottle-to-bottle cycle by developing its own infrastructure and sharing it through partnerships with other stakeholders. Coca-Cola FEMSA is achieving its 50% collection commitment in its major markets as well as using an average of 23.7% of recycled resin usage in PET bottles.
As part of the green bond issuance, the Company published its Green Bond Framework, which is aligned with the four core components of the 2018 Green Bond Principles administered by the International Capital Market Association (ICMA). The Company obtained an Independent Opinion from Sustainalytics in accordance with industry best practices.
