Starbucks Raises $500 Million With Its First Sustainability Bond
- Ten-year notes will support farmers, ethical coffee sourcing
- Company will publish annual updates on use of bonds’ proceeds
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Starbucks Corp. is turning to the bond market to fund its sustainable-coffee efforts.
The Seattle-based chain has issued a first-of-its-kind $500 million U.S. corporate sustainability bond, according to a statement Monday. The 10-year, 2.45 percent senior notes will fund programs that ensure coffee is grown and distributed in a way that can be maintained over the long run, such as providing fair pay for workers and protection for wildlife. Out of the 551 million pounds of coffee Starbucks purchased last year, 99 percent met its ethical sourcing standards, the company said.