Corporate Bonds Sold for Sustainable Projects: A New Trend in Finance

Is Starbucks’ issuance of a $500 million corporate bond to support programs for coffee farmers the start of a new investment trend? Given the enthusiastic response, the answer is probably “yes.” Starbucks has indicated the issue was “significantly oversubscribed,” and that it “attracted interest from a diverse group of socially conscious investors outside of its normal investor base,” reports Fortune. The notes are rated A- by Standard & Poor’s, in line with the company’s corporate credit rating, so financially they are sound. Conceptually, aiming the mission-defined funds at the company’s producers is smart business and even smarter branding to the millennial market that makes up much of Starbucks customers: young adults aged 18 – 24 are 40% of the company’s sales. Other millennial-favored brands (Apple, Nike, Google, et. al.) are surely taking notes.

John Howell, Editorial Director

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News & Blogs

13 min 16 sec ago

(3BL Media/Justmeans) – Leading companies increasingly recognize the importance of embedding sustainability into their business models. However, professionals seeking sustainability outcomes face certain barriers. Return-on-investment rules are a long-standing challenge, and overcoming them requires positive engagement with finance teams. Presenting a strong business case is another key challenge, requiring creative work across the organization and often with external stakeholders.

1 day 6 hours ago

(3BL Media/Justmeans) – Millennials — the 20 and early 30-somethings that everyone is talking about; who are closely linked to technology’s rapid ascent; and who are expected to make up 50 percent of the workforce by 2020 — have become more than a demographic age group.

1 day 21 hours ago

(3BL Media/Just Means) -​ ​Nestlé has unveiled the finalists for the Created Shared Value (CSV) Prize 2016. These are​ ​Natural Extracts Industries (NEI) from Tanzania and Agro-Hub from Cameroon. Competition was stiff: the two finalists underwent four screening phases and beat out a​ ​list of 450​ ​contenders.

2 days 19 hours ago

(3BL Media/Justmeans) - This week, a couple of important shareholder resolutions will be brought forward in the annual meetings of energy giants Exxon-Mobil and Chevron.

3 days 6 hours ago

(3BL Media/Justmeans) – It’s now a moral and economic crisis when many young Americans graduate from high school without being on a pathway to a well-paying job. In Greater New Orleans, nearly one in five young people are neither working or in school. The region is home to the third largest population of disconnected youth in the U.S., where nearly 40 percent of of the children live in poverty and few students have exposure to good-paying, high-demand careers.

3 days 12 hours ago

(3BL Media/Just Means) - In ​​the context of the 69th World Health Assembly that kick​ed​ off today in Geneva, Swtizerland, Novartis will be presenting ​the concept and results of its novel approach ​to tackle chronic diseases in resource-constrained countries.

4 days 43 min ago

(3BL Media/Justmeans) – Nearly 15 percent of Americans fall below the poverty line, which is set at about $24,000 a year for a family of four. Historically, foundations have helped the disadvantaged by granting money to nonprofits to provide social services. But now, some are supporting for-profit enterprises that aim to bridge the glaring income gap between those at the top and the bottom of the pyramid.