Pfizer issues $1bn sustainability bond

Proceeds are earmarked for the manufacturing and distribution of vaccines�

August 27, 2021

Pfizer has increased its presence in the growing sustainable debt market by issuing a $1�billion�sustainability bond which will support the delivery of the Covid-19 vaccine.�
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The note, due in 2031, is set to yield 0.53 percentage points above Treasuries after initial price discussions in the 0.75 percentage point area, according to media reports.�
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The New York-based pharmaceutical firm says proceeds from the sale are earmarked for research and development expenses and manufacturing and distribution of vaccines.�
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Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley are leading the sale which will also boost environmental and social impact projects within vulnerable populations.�
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Pfizer also sold a similar $1.25bn sustainability bond in March 2020 which will pay interest semi-annually of 2.625%�and mature in 2030.�
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Pfizer�s executive VP Sally Susman said enhancing �our environmental stewardship and favourably impacting on the health of society is a goal Pfizer feels passionately about�.�
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PNC Bank also closed its inaugural social bond in August 2021 with an issuance of $700m in 1.15%�senior notes due in 2026.�
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The US financial giant said proceeds would be primarily used to finance or refinance projects that promote "positive social outcomes" and benefit low-and-middle-income communities.�
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Momentum in the sustainable debt market - green, social and sustainability (GSS) bonds - looks set to continue, according to a report from the investor-focused not-for-profit Climate Bonds Initiative.��
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It said the market reached a cumulative $1.7�trillion�in 2020, with green remaining the dominant theme, but with social and sustainability achieving higher volumes than in all previous years combined.�
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The report concludes it expects the coming year to deliver a �sustained resurgence in GSS markets� driven by factors such as increasing national net-zero commitments and potential for a new climate triple-axis between the US, China and the EU, and a shift towards transition-based investment.�
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