PepsiCo Inc. has joined the charge to make green bonds more mainstream as the soda giant priced its debut sale of the debt.
The company offered $1 billion of senior unsecured green securities, according to a person with knowledge of the matter. The 30-year bonds will yield 92 basis points above Treasuries, after initially discussing 110 basis points, said the person, who asked not to be identified as the details are private. That’s the larger end of its targeted range, and at the lower end of price talk, the person said.
Pepsi plans to invest the proceeds in sustainable development goals as defined by the United Nations, including eco-friendly plastics and packaging and cleaner transportation, according to a filing Monday. The packaged food and beverage company already has about $34 billion of debt outstanding, but this is its first green bond.
The company’s existing 30-year bonds due 2049 currently trade about 94 basis points wider than similarly dated Treasuries, according to Trace bond price data. CreditSights analysts James Dunn and Ben Morgan said earlier Monday that the new notes would likely price closer to those outstanding, especially given the green attributes of the bonds.
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