First multi-currency same day execution of
green labeled bonds from an investment grade U.S. issuer (EUR &
USD)
First U.S. chemical company to issue a green
bond with green and blue hydrogen as an eligible expenditure
category
LEHIGH
VALLEY, Pa., March 6,
2023 /PRNewswire/ -- Air Products (NYSE:APD) has
successfully issued its registered green bond offerings of
$600 million aggregate principal
amount of U.S. dollar-denominated fixed-rate notes and €700 million
aggregate principal amount of euro-denominated fixed-rate notes.
The green bond issuances consisted of the following tranches:
U.S.
Dollar-Denominated Offering
|
Euro-Denominated
Offering
|
$600 million of 4.80%
Notes due 2033
|
€700 million of 4.00%
Notes due 2035
|
"Put simply, sustainability is our growth strategy at Air
Products," said Seifi Ghasemi,
Chairman, President and CEO. "We want to grow responsibly through
sustainability-driven opportunities that benefit our customers and
our world. Importantly, our multi-currency green bond offerings
make us the first U.S. chemical company to issue with green and
blue hydrogen as an eligible expenditure category, further
reinforcing our leading position advancing the energy transition
through hydrogen for zero-emission transportation and industrial
decarbonization."
Air Products intends to use the net proceeds from the notes
offerings to finance or refinance, in whole or in part, one or more
Eligible Projects (as defined in the applicable prospectus
supplement), including:
- expenditures and investments related to pollution prevention
and control–green and blue hydrogen and green and blue
ammonia;
- expenditures in renewable energy; and
- expenditures and investments related to sustainable aviation
fuel.
Pending full allocation of the net proceeds to such Eligible
Projects, Air Products may hold and/or invest the balance of such
net proceeds not yet allocated, in the Company's discretion, in its
Treasury portfolio (in cash, cash equivalents, money market funds,
etc.) in line with its Treasury policies or use them to repay a
portion of outstanding indebtedness.
Morningstar Sustainalytics, a leading global provider of
environmental, social, and governance (ESG) research and ratings,
has completed and published a Second Party Opinion (SPO) on Air
Products' green finance framework. The firm reviewed Air Products'
green finance framework and determined that the planned use of
proceeds is consistent with Air Products' sustainability strategy.
Sustainalytics' SPO offers investors additional insight into the
alignment of Air Products' green finance framework with the Green
Bond Principles.
Air Products will publish annual updates on the allocation of
the proceeds until the proceeds have been fully allocated to
projects meeting the eligibility criteria. These updates will be
reported publicly on Air Products' website
at www.airproducts.com and may include additional
descriptions of select projects, and, where possible, their
environmental and/or social impacts.
The Company's green finance framework and Sustainalytics' SPO
can be accessed from Air Products' Sustainability website.
Sustainability-linked Syndicated Revolving Credit
Facility
In March 2021, Air Products was
the first major U.S. chemical company to incorporate
sustainability-linked ESG-related metrics into its $2.75 billion syndicated revolving credit
facility.
About Air Products
Air Products (NYSE:APD) is a world-leading industrial gases
company in operation for over 80 years focused on serving energy,
environmental, and emerging markets. The Company has two growth
pillars driven by sustainability. Air Products' core business
provides essential industrial gases, related equipment and
applications expertise to customers in dozens of industries,
including refining, chemicals, metals, electronics, manufacturing,
and food. The Company also develops, engineers, builds, owns and
operates some of the world's largest industrial gas and
carbon-capture projects, supplying world-scale clean hydrogen for
global transportation, industrial markets, and the broader energy
transition. Additionally, Air Products is the world leader in the
supply of liquefied natural gas process technology and equipment,
and globally provides turbomachinery, membrane systems and
cryogenic containers.
The Company had fiscal 2022 sales of $12.7 billion from operations in over 50
countries and has a current market capitalization of approximately
$65 billion. More than 21,000
passionate, talented and committed employees from diverse
backgrounds are driven by Air Products' higher purpose to create
innovative solutions that benefit the environment, enhance
sustainability and reimagine what's possible to address the
challenges facing customers, communities, and the world. For more
information, visit www.airproducts.com or follow us on LinkedIn,
Twitter, Facebook or Instagram.
Cautionary Note Regarding Forward-Looking Statements
This release contains "forward-looking statements" within the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, including statements regarding expectations with
respect to each of the notes offerings. Forward-looking statements
are based on management's expectations and assumptions as of the
date of this release and are not guarantees of future performance.
While forward-looking statements are made in good faith and based
on assumptions, expectations and projections that management
believes are reasonable based on currently available information,
actual performance and financial results may differ materially from
projections and estimates expressed in the forward-looking
statements because of many factors, including, without limitation:
the duration and impacts of the ongoing COVID-19 global pandemic
and efforts to contain its transmission, including the effect of
these factors on our business, our customers, economic conditions
and markets generally; changes in global or regional economic
conditions, inflation and supply and demand dynamics in the market
segments we serve, including demand for technologies and projects
to limit the impact of global climate change; changes in the
financial markets that may affect the availability and terms on
which we may obtain financing; the ability to implement price
increases to offset cost increases; disruptions to our supply chain
and related distribution delays and cost increases; risks
associated with having extensive international operations,
including political risks, risks associated with unanticipated
government actions and risks of investing in developing markets;
project delays, contract terminations, customer cancellations, or
postponement of projects and sales; our ability to safely develop,
operate, and manage costs of large-scale and technically complex
projects; the future financial and operating performance of major
customers, joint ventures, and equity affiliates; our ability to
develop, implement, and operate new technologies and to market
products produced utilizing new technologies; our ability to
execute the projects in our backlog and refresh our pipeline of new
projects; tariffs, economic sanctions and regulatory activities in
jurisdictions in which we and our affiliates and joint ventures
operate; the impact of environmental, tax, safety, or other
legislation, as well as regulations and other public policy
initiatives affecting our business and the business of our
affiliates and related compliance requirements, including
legislation, regulations, or policies intended to address global
climate change; changes in tax rates and other changes in tax law;
safety incidents relating to our operations; the timing, impact,
and other uncertainties relating to acquisitions and divestitures,
including our ability to integrate acquisitions and separate
divested businesses, respectively; risks relating to cybersecurity
incidents, including risks from the interruption, failure or
compromise of our information systems; catastrophic events, such as
natural disasters and extreme weather events, public health crises,
acts of war, including Russia's
invasion of Ukraine and the
ongoing civil war in Yemen, or
terrorism; the impact on our business and customers of price
fluctuations in oil and natural gas and disruptions in markets and
the economy due to oil and natural gas price volatility; costs and
outcomes of legal or regulatory proceedings and investigations;
asset impairments due to economic conditions or specific events;
significant fluctuations in inflation, interest rates, and foreign
currency exchange rates from those currently anticipated; damage to
facilities, pipelines or delivery systems, including those we own
or operate for third parties; availability and cost of electric
power, natural gas, and other raw materials; the success of
productivity and operational improvement programs; and other risks
described in our Annual Report on Form 10-K for the fiscal year
ended September 30, 2022 and
subsequent filings we have made with the U.S. Securities and
Exchange Commission. You are cautioned not to place undue reliance
on our forward-looking statements. Except as required by law, we
disclaim any obligation or undertaking to update or revise any
forward-looking statements contained herein to reflect any change
in assumptions, beliefs, or expectations or any change in events,
conditions, or circumstances upon which any such forward-looking
statements are based.
View original
content:https://www.prnewswire.com/news-releases/air-products-issues-inaugural-green-bonds-across-600-million-and-700-million-debt-offerings-301762979.html
SOURCE Air Products