Mastercard has announced that it priced a $600 million “sustainability bond” at a fixed rate of 1.90%.
In a statement released by the Purchase-headquartered company, the bond will be used to support Mastercard”™s efforts to “build an inclusive and sustainable digital economy through commercially sustainable social impact.”
These efforts include a corporate global goal of net zero emissions by 2050 and bringing 1 billion people and 50 million small businesses into the digital economy by 2025.
“No matter where you work or live, we are all in the sustainability business; the future of people, our planet and the economy are inextricably linked,” said CEO Michael Miebach.
“To deliver positive social and environmental impact at scale companies need to invest in the technology, insights and partnerships to make programs commercially sustainable for the long term. Our sustainability bond will support both social and green initiatives to drive inclusive and sustainable growth for our company and the communities we serve around the world.”
Accompanying the 10-year sustainability bond was a traditional $700 million 30-year bond that will pay interest semiannually at a fixed rate of 2.95%. Mastercard plans to allocate the net proceeds from the sustainability bond to eligible initiatives within three years of the transaction.
