Chicago, June 17 – Wesfarmers Ltd. sold its first sustainability-linked issues (A3/A-) in a two-part offering for A$1 billion, according to a notice.
The company sold A$650 million of 1.94% bonds due June 2028.
Additionally, there was a tranche of A$350 million 2.55% bonds due June 2031.
The offer was approximately 2.5x oversubscribed.
The interest rates on the bonds are linked to progress against specific renewable energy and emissions performance targets. Specifically, the performance targets relate to increasing the use of renewable energy in the group’s retail divisions and to reducing the CO2e emissions intensity of ammonium nitrate production in the chemicals, energy and fertilizers division.
Proceeds will be used for general corporate purposes, including refinancing upcoming bond maturities in October and in August 2022.
Joint lead managers for the issue were Australia and New Zealand Banking Group, BNP Paribas, Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp.
Joint sustainability coordinators were Australia and New Zealand Banking Group, BNP Paribas and Westpac.
Wesfarmers is a Perth, Australia-based conglomerate that operates in the retail, chemical, fertilizer, industrial and safety products sectors.
| Issuer: | Wesfarmers Ltd.
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| Issue: | Sustainability-linked bonds
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| Amount: | A$1 billion
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| Bookrunners: | Australia and New Zealand Banking Group, BNP Paribas, Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp.
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| Trade date: | June 16
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| Settlement date: | June 23
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| Ratings: | Moody’s: A3
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| S&P: A-
|
|
|
| 2028 notes
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| Amount: | A$650 million
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| Maturity: | June 2028
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| Coupon: | 1.94%
|
|
|
| 2031 notes
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| Amount: | A$350 million
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| Maturity: | June 2031
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| Coupon: | 2.55%
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