Eastman Announces Closing of Inaugural $500 Million Green Bond Issuance
March 08 2023 - 4:30PM
Business Wire
Net Proceeds will be Allocated Toward a
Portfolio of Eligible Green Investments in Support of Eastman’s
Sustainability Goals
Eastman Chemical Company (NYSE:EMN) today announced that it has
closed its offering of $500 million principal amount of 5.750%
Senior Unsecured Notes due 2033, which is the first investment
grade USD-denominated senior unsecured green bond offering by a
U.S. issuer in the chemical sector. Net proceeds will be allocated
to eligible projects to advance Eastman’s sustainability goals of
mitigating climate change, mainstreaming circular economy, and
caring for society.
“I am proud to announce that we have successfully issued our
first green bond,” said Senior Vice President and Chief Financial
Officer Willie McLain. “Sustainability is at the heart of our
corporate strategy and this green bond issuance is testament of our
commitment to creating solutions that address environmental and
social challenges faced today.”
Eastman intends to allocate an amount equivalent to the net
proceeds of the $500 million offering to finance or refinance, in
whole or in part, to one or more new or existing eligible projects
in the following categories as outlined in Eastman’s Green
Financing Framework:
- Circular economy production technologies and processes;
- Eco-efficient and/or circular economy adapted technologies and
products;
- Pollution prevention and control;
- Energy efficiency;
- Renewable energy; and/or
- Sustainable water and wastewater management.
Eastman has committed to provide an allocation and impact report
annually until full allocation of the net proceeds from the
offering and, in the event of any material changes, until the
relevant maturity date, which will be available on Eastman’s
website. This report will provide the amount of net proceeds
allocated to eligible project categories, the percentage of
allocation of net proceeds between financing/refinancing of
existing and new projects, the remaining balance of unallocated
proceeds at the end of the reporting period, if any, and impact
reporting, to the extent feasible, at the level of each eligible
project category.
Eastman’s Sustainability Strategy
Eastman is centered on sustainability at our core. Our
sustainability strategy, which we call A Better Circle, is
comprised of meaningful and measurable goals that ensure progress
toward the environmental, social, and governance (ESG) expectations
of our stakeholders. We’re focusing on designing sustainable
solutions and scaling positive societal impact while also
delivering financial value to our shareholders. Our goals and
objectives are structured across three pillars: mitigating climate
change, mainstreaming circularity, and caring for society.
In September 2022, Eastman published a comprehensive
Sustainability Report, which is available here.
Founded in 1920, Eastman is a global specialty materials company
that produces a broad range of products found in items people use
every day. With the purpose of enhancing the quality of life in a
material way, Eastman works with customers to deliver innovative
products and solutions while maintaining a commitment to safety and
sustainability. The company’s innovation-driven growth model takes
advantage of world-class technology platforms, deep customer
engagement, and differentiated application development to grow its
leading positions in attractive end markets such as transportation,
building and construction, and consumables. As a globally inclusive
and diverse company, Eastman employs approximately 14,500 people
around the world and serves customers in more than 100 countries.
The company had 2022 revenues of approximately $10.6 billion and is
headquartered in Kingsport, Tennessee, USA.
Forward-Looking Statements
This news release contains forward-looking statements that are
based on current expectations and beliefs of Eastman. All
statements other than statements of historical fact, are statements
that could be deemed forward-looking statements, including the
intended use of proceeds from the offering and Eastman’s green or
sustainability objectives, goals and commitments. Such expectations
and assumptions are based upon certain preliminary information,
internal estimates, and management assumptions, expectations, and
plans, and are subject to a number of risks and uncertainties
inherent in projecting future conditions, events, and results.
Actual results could differ materially from expectations and
assumptions expressed in the forward-looking statements if one or
more of the underlying assumptions or expectations prove to be
inaccurate or are unrealized. Important factors that could cause
actual results to differ materially from such expectations are and
will be detailed in the company’s filings with the Securities and
Exchange Commission, including the Form 10-K filed for 2022, which
is available, on the Eastman website at www.eastman.com in the
Investors, SEC filings section. These statements are based on our
current beliefs and expectations and speak only as of the date of
this release. We do not undertake any obligation to publicly update
any forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20230308005808/en/
Media: Tracy Kilgore Addington 423-224-0498 / tracy@eastman.com
Investors: Greg Riddle 212-835-1620 / griddle@eastman.com
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