Mastercard Issues $600 Million Sustainability Bond
March 03 2021 - 6:00AM
Business Wire
Builds on Mastercard’s pledge to achieve net
zero emissions by 2050 and commitment to bring 1 billion people and
50 million small businesses into the digital economy by 2025
Mastercard today announced that it has successfully priced a
$600 million Sustainability Bond at a fixed rate of 1.90%. This
milestone further supports the company’s work to build an inclusive
and sustainable digital economy through commercially sustainable
social impact. Mastercard’s global commitments include reaching net
zero emissions by 2050 and bringing 1 billion people and 50 million
small businesses into the digital economy by 2025.
The proceeds from the Sustainability Bond will support
significant progress already made towards maximizing carbon
reduction, supporting environmental choices for customers, and
fostering inclusive growth. Investors will now have the opportunity
to contribute to the advancement of these efforts. Specific green
and social projects will align across eleven areas, as outlined in
the Mastercard Sustainability Financing Framework and will
contribute to the advancement of the UN Sustainable Development
Goals.
“No matter where you work or live, we are all in the
sustainability business; the future of people, our planet and the
economy are inextricably linked,” said Michael Miebach, chief
executive officer. “To deliver positive social and environmental
impact at scale companies need to invest in the technology,
insights, and partnerships to make programs commercially
sustainable for the long term. Our Sustainability Bond will support
both social and green initiatives to drive inclusive and
sustainable growth for our company and the communities we serve
around the world.”
Building an Inclusive and Sustainable Digital Economy
Mastercard leverages its products, services, capital resources
and people to address issues of social and economic inequality. As
a leader in financial inclusion for more than a decade, last year
the company reached a global milestone of achieving financial
inclusion for 500 million previously unbanked people. In 2020
Mastercard also committed $250 million to supporting the recovery
of small businesses globally and $500 million to closing the racial
wealth and opportunity gap in the U.S. starting in seven
cities.
In addition to pledging to net zero emissions, Mastercard’s
environmental progress includes being the first in the payments
industry to gain Science Based Targets initiative (SBTi) approval
for its GHG goals, aligning with the Business Ambition for 1.5°C
pledge. The company has also achieved its goal of 100% renewable
electricity. By collaborating with banks, merchants and other
industry partners Mastercard is supporting consumers with their
environmental consumption choices and is committed to regrow 100
million trees over 5 years through the Priceless Planet
Coalition.
The 10-year bond will pay interest semi-annually at a fixed rate
of 1.90%. Accompanying this 10-year Sustainability Bond was a
traditional $700 million 30-year bond that will pay interest
semi-annually at a fixed rate of 2.95%. Mastercard expects to
allocate the net proceeds from the Sustainability Bond to eligible
initiatives within 3 years of the transaction.
The Mastercard Sustainability Financing Framework has been
reviewed by Sustainalytics, a Second Party Opinion Provider and is
aligned with the Green Bond Principles (2018), Social Bond
Principles (2020), Sustainability Bond Guidelines (2018) and Green
Loan Principles (2018).
About Mastercard (NYSE: MA)
Mastercard is a global technology company in the payments
industry. Our mission is to connect and power an inclusive, digital
economy that benefits everyone, everywhere by making transactions
safe, simple, smart and accessible. Using secure data and networks,
partnerships and passion, our innovations and solutions help
individuals, financial institutions, governments and businesses
realize their greatest potential. Our decency quotient, or DQ,
drives our culture and everything we do inside and outside of our
company. With connections across more than 210 countries and
territories, we are building a sustainable world that unlocks
priceless possibilities for all.
www.mastercard.com
Forward Looking Statement
Statements in this press release which are not historical facts
are or could be forward-looking and subject to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
When used in this press release, the words “believe”, “expect”,
“could”, “may”, “would”, “will”, “trend” and similar words are
intended to identify forward-looking statements. Examples of
forward-looking statements include, but are not limited to,
statements relating to use of proceeds from the offering of the
Sustainability Bond and issuance of the Sustainability Bond.
Forward-looking statements speak only as of the date they are made,
and the company undertakes no duty to update any forward-looking
statements made in this press release or to conform such statements
to actual results or changes in the company’s expectations. For
additional information on other factors related to Mastercard’s
overall business that could cause Mastercard’s actual results to
differ materially from those described in the forward looking
statements, please see the company’s filings with the Securities
and Exchange Commission, including the company’s Annual Report on
Form 10-K for the year ended December 31, 2020, and any subsequent
reports on Forms 10-Q and 8-K.
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Caroline Niven 914-249-1304 caroline.niven@mastercard.com
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