Owens-Illinois, Inc. is the first company in the packaging industry to issue a Green Bond, furthering its commitment to sustainability throughout its global manufacturing operations and glass packaging.
To support the debt offering, O-I developed a Green Bond Framework, describing in detail the Company’s sustainability strategy and goals and the types of investments that O-I is pursuing from a sustainability perspective. The bond offering received overwhelming support; the offering was upsized from 300 million EUR to 500 million EUR, and priced a historically low coupon rate for O-I at 2.875 percent.
“Glass is a highly attractive package for the new green economy given its clear sustainability attributes – it is pure, healthy and infinitely recyclable. Glass is good for you and good for the planet,” said Andres Lopez, Chief Executive Officer. “Sustainability is woven into everything we do and the Green Bond formalizes our intentions to positively impact our products, operations and financials. We believe this commitment will gain investors’ confidence in our company and our product.”
The Company will allocate an amount equal to the net proceeds of this offering to finance and/or refinance a variety of new and existing Eligible Green Projects made during the three years prior to the issuance of the Green Bond and the three years subsequent to the issuance of the Green Bond.
The “Eligible Green Projects” that O-I will invest in are further described in O-I’s Green Bond Framework and include:
- projects and investments aimed at replacing fossil fuel energy with renewable energy (wind and solar);
- investments in energy efficient solutions, such as LED lighting;
- use of new technologies aimed at reducing water consumption in the manufacturing process;
- projects, investments and research and development aimed at improving the production technologies and processes in manufacturing facilities and facilitating the use of alternative resources;
- projects aimed at using circular economy programs, including waste collection and/or glass recycling processing facilities; and
- projects aimed at decreasing the use of raw material, and using sustainable raw material to produce environmentally friendly products.
The Company’s Eligible Green Projects are designed to advance certain U.N. Sustainable Development Goals. O-I received a second party opinion from Sustainalytics, a leading independent ESG research and ratings firm. Sustainalytics noted in its opinion that the Company’s Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles.
Click here to view O-I’s Green Bond Framework.
Click here to view Sustainalytics Second Party Opinion.