CHICAGO, ILLINOIS, US — Archer Daniels Midland Co. (ADM) successfully priced its first sustainable bond to support its environmental, social and governance (ESG) goals, the company announced Feb. 23.
ADM agreed to issue $750 million in aggregate principal amount of 2.9% notes due 2032. The offering is expected to close on Feb. 28, subject to the satisfaction of customary closing conditions.
ADM intends to use the net proceeds from the offering to finance and/or refinance projects that meet certain criteria set forth in its Sustainable Financing Framework. ADM adopted the Framework this month, and eligible projects will fall under one or more of the following categories:
- Green projects related to sustainable aquaculture and animal husbandry, sustainable agriculture, green buildings, energy efficiency, renewable energy, clean transportation, water and waste management, and pollution prevention and control.
- Social projects related to socioeconomic advancement and empowerment, and food security and sustainable food systems.
ADM obtained a second-party opinion on the Framework, which concluded that the Framework is aligned with the International Capital Market Association’s Sustainability Bond Guidelines, 2021.
The Framework and additional information about ADM’s sustainability commitments and ESG initiatives can be found on ADM’s website.
BNP Paribas Securities Corp. and J.P. Morgan Securities LLC acted as joint book-running managers for the offering. BofA Securities, Inc., Citigroup Global Markets Inc., Barclays Capital Inc., Deutsche Bank Securities Inc., MUFG Securities Americas Inc., Academy Securities, Inc., Guzman & Company, Loop Capital Markets LLC and Siebert Williams Shank & Co., LLC also served as underwriters for the offering.