Analysts remark on Visa’s $500m first digital payments green bond
Analysts and investors have described the recent green bond by Visa as welcomed development for the investing community.
According to them, the $500 million worth bond, which marked the first green bond by a digital payment network will revolutionise the payment industry in line with sustainable development goals.
Visa had issued and priced its first green bond offering, totaling $500 million, ensuring the company’s focus on environmental initiatives and sustainability goals.
The bond offering will pay a semi-annual coupon of 0.75 per cent and matures August 15, 2027, according to a report in Finextra.
The green bond will be used to help advance the company’s commitment to environmental sustainability and a sustainable payments ecosystem.
In support of that commitment and in addition to its inaugural green bond, Visa has also announced the appointment of its first chief sustainability officer, Douglas Sabo.
As outlined in the Visa Green Bond Framework, the proceeds of the green bond will be used to fund projects including upgrades to buildings, energy efficiency improve have ments, expanded usage of renewable energy sources, water efficiency projects, employee commuter programs, and research and initiatives focused on sustainable consumer behaviors.
The proceeds will also support investments in projects to inspire and foster sustainable living in support of the United Nations (UN) Sustainable Development Goals (SDGs).
Visa said it will issue an annual report on the use of proceeds from the green bond and their environmental impact
Sustainalytics, a provider of ESG research, ratings and data, provided the second-party opinion on the environmental benefits of Visa’s Green Bond Framework as well as its alignment with the Green Bond Principles.
Google’s parent company Alphabet recently made headlines for issuing $5.75 billion in sustainability bonds, the largest sustainability or green bond by any company in history.
Although a number of companies have issued green bonds (directed solely to environmental uses), sustainability bonds differ in that their proceeds support investment in both environmental and social initiatives, analysts have explained.