O-I Glass Completes Full Allocation for Second Round of Green Bond Offerings
May 13 2024 - 4:15PM
– O-I Glass, Inc. (“O-I Glass”, “O-I” or the “Company”)
announced today that the Company has completed full allocation of
the proceeds from its second round of Green Bond offerings to
advance the company’s climate-change strategy. In May of 2023,
Owens-Brockway Glass Container Inc., and OI European Group B.V.
launched private Green Bond offerings of $690 million and €600
million, respectively.
The Green Bond
proceeds were spent on Eligible Green Projects as defined in O-I’s
Green Financing Framework (the “Framework”), developed based on the
Green Bond Principles and the Green Loan
Principles.
The Company engaged
Sustainalytics to provide a second-party opinion, which noted the
Framework’s outlined Eligible Green Projects are “expected to
deliver positive environmental impact” and are “credible from a
transition perspective.”
The Green Bond proceed
expenditures enriched O-I’s climate-change strategy through the
following Eligible Green Projects: renewable energy reliance,
energy efficiency, sustainable practices in water and wastewater
management, environmentally friendly production technologies and
processes, circular economy, and environmentally friendly adapted
products.
Additional details of
the Company’s allocation are provided in the following
tables:
Eligible Green Projects |
Total Allocation (USD) up to January 2024 |
Sustainability in O-I Group Operations |
Renewable Energy |
1,937,133 |
Energy Efficiency |
3,534,676 |
Sustainable Water & Wastewater Management |
1,905,892 |
Environmentally Friendly Production Technologies and
Processes |
164,272,175 |
Sustainable Products |
Circular Economy |
1,151,953,109 |
Environmentally Friendly Adapted Products |
15,657,015 |
Total Use of Proceeds |
1,339,260,000 |
Use of Proceeds Spends on Eligible Green Projects (USD) |
Financed |
448,287,316 |
Refinanced |
890,972,684 |
Total Use of Proceeds |
1,339,260,000 |
Use of Proceeds Spends on Eligible Green Projects (USD) |
Operating Spends |
1,236,857,118 |
Capital Expenditures |
102,402,882 |
Total Use of Proceeds |
1,339,260,000 |
“The road to sustainability, for O-I, is paved by innovation”
said Meena Dafesh, Vice President, Treasurer for O-I. “We are
continuously working across our entire ecosystem of partners to
advance the sustainability of our products and processes. Through
the use of Green Bond proceeds, and other visionary approaches, O-I
is making tangible progress toward our ambitious sustainability
goals and helping our customers to advance in their aspirations as
well.”
The commitment to cullet (recycled glass) investment underscores
the company's strides toward a sustainable future by immediately
reducing carbon emissions, lowering energy consumption, and
preserving natural resources. With the amount of cullet designated
for this initiative, the company has achieved significant
conservation efforts including, approximately:
- 5.7. million metric tons of CO2;
- 4.7 million MwH of energy;
- 6.3 million tons of silica sand;
- 2.0 million tons of soda ash; and
- 1.8 million tons of limestone and dolomite
These sustainable
savings coming from cullet utilization are further enhanced by
additional eco-friendly investments made by the company that are
designated to that initiative, which include:
- MAGMA technology, which is designed for flexible, modular glass
production and can reduce the environmental footprint of glass
production. Facilities built for MAGMA will feature a smaller
melter and will be constructed using more sustainable methods and
materials. MAGMA technology will enable advanced technologies,
including light-weighting potential, on-off capability, and can
include feed-forward and feed-back control loops to promote premium
quality glass.
- Advances in the O-I Zipaquirá Colombian plant are set to
improve energy efficiency, lowering CO2 emissions by up to 15% per
ton produced on the new furnace. In addition to the decarbonization
impacts, the new technologies also reduce NOX emissions by up to 50
% compared to a traditional air fuel-fired furnace and allow for
higher usage of recycled glass.
- A Gas Oxy Advanced Technology (GOAT) furnace in O-I's
Gironcourt, France plant, which uses oxygen to reduce CO2 emissions
by up to 20% and NOX emissions by up to 60%.
- The R&D team at O-I developed the "Estampe” bottle in
France to leverage greater recycled content, up to 80% or more on
average – well above the current European average of 50% recycled
content. The innovative Estampe bottle strengthens the overall
sustainability with a reduced carbon footprint – about 25% less
carbon emissions compared to conventional 500g wine
bottles.
Management’s
assertions on the allocation of an amount equal to net proceeds to
qualifying Eligible Green Projects as well as the examination
reports of our independent accountants are available on the O-I
website, along with information on O-I’s overall sustainability
agenda.
In November 2019, O-I
became the first U.S. high yield industrial green bond issuer with
the company’s inaugural green bond issuance, and O-I remains
committed to supporting our climate-change strategy through
sustainable financings. To learn more about O-I’s Green Financing
Framework, offerings, and allocation of net proceeds to qualifying
eligible green projects, visit:
http://o-i.com/sustainability
IMPORTANT NOTES
ABOUT THIS INFORMATION
Perceptions of the
sustainability and “green” nature of activities and projects are
subject to varying definitions, expectations, and regulations,
which continue to evolve. Certain of these decisions involve
notable discretion and, as such, we cannot guarantee that the
activities discussed above align to any particular stakeholder’s
preferences or any specific taxonomy regarding sustainable or green
activities. Moreover, our Green Financing Framework, the allocation
of funds to Eligible Green Projects referenced in this
announcement, and related aspects of our climate-change strategy
are subject to certain important disclaimers, qualifiers, and
risks, including those included in our filings with the Securities
and Exchange Commission, that should be reviewed in concert with
any assessment of the characterization of our activities
hereunder.
ABOUT O-I
GLASS
At O-I Glass, Inc.
(NYSE: OI), we love glass, and we are proud to be one of the
leading producers of glass bottles and jars around the globe. Glass
is not only beautiful, it is also pure, healthy, and completely
recyclable, making it the most sustainable rigid packaging
material. Headquartered in Perrysburg, Ohio (USA), O-I is the
preferred partner for many of the world’s leading food and beverage
brands. We innovate in line with customers’ needs to create iconic
packaging that builds brands around the world. Led by our diverse
team of approximately 23,000 people across 68 plants in 19
countries, O-I achieved revenues of $7.1 billion in 2023. Learn
more about us: o-i.com / Facebook / Twitter /
Instagram / LinkedIn
Jim Woods
Corporate Affairs
james.woods@o-i.com
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