Apple issues a second green bond of $1 billion to account clean energy

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Apple issues a second green bond of $1 billion to account clean energyApple Inc. has issued the second largest green bond worth of $1 billion sold by US corporation financing clean energy and global warming projects. The green bond was passed after the President Donald Trump withdrew the United States from the Paris climate agreement. This green bond was meant to demonstrate that business is still committed to the goals of the 194-nation accord. This international curb greenhouse-gas emission is signed by almost 200 countries.

Lisa Jackson, Apple’s vice president of environment, policy and social initiatives said, “Leadership from the business community is essential to address the threat of climate change and protect our shared planet.” Apple was among several companies who signed an open letter vowing to continue supporting efforts to meet the Paris agreement.  Tim Cook, Apple’s Chief Executive Officer said last week that he required encouraging the president not to withdraw.

According to a spokesperson with knowledge matter, the latest bonds put forth by Apple will be maturing in 2027 and will yield 95 to 100 basis points more than Treasuries. They are expected to be rated Aa1, the spokesperson further added. Last year, Apple allocated $442 million to 16 different projects from renewable energy to recycling from its first bond offer. One of the projects it sponsored was a robotic system called Liam to take apart junked iPhones and recover valuable materials that can be recycled, such as silver and tungsten – an attempt to address criticism that Apple’s products, while sleek and seamless in design, are so tightly constructed that their components can be difficult to take apart.

These new offerings also focus on helping Apple to meet its goal of greening its supply chain and making use of only renewable and recycled materials. Apple offered $442 million to 16 different projects right from renewable energy to recycling from its first bond offer. A robotic system called as Liam was one of the project Apple funded to recycle the valuable materials such as silver and tungsten. Organizations such as Bank of America Corp., Goldman Sachs Group Inc., and JPMorgan Chase & Co. Apple will also provide finance to renewable energy resources and energy efficiency projects.

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