Starbucks issues $500 million sustainability bond
Starbucks Corp. said Monday that it has closed an underwritten public offering of senior notes, including the first U.S. corporate sustainability bond. The net proceeds of $500 million in 2.450% senior notes due 2026 will be used to enhance sustainability programs around the coffee supply chain, including procurement from suppliers verified by a third-party for ethical sourcing and the development of farmer support centers in coffee-growing regions. Starbucks said it has a commitment to provide $50 million in short- and long-term loans through its eight farmer support centers in places like Tanzania and China, and bought a coffee farm in Costa Rica that's now a center for plant science. It's also a founder of the Sustainable Coffee Challenge, an effort to make coffee the first sustainable agricultural product in the world. Starbucks shares closed Monday down 0.5%, but shares are up 9.3% for the past year. The S&P 500 is down 2.7% for the past year.
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