Eastman Closes First $500m Green Bond Issuance

Eastman Chemical Company has completed its issuance of $500 million in 5.750% Senior Unsecured Notes due 2033, marking the first USD-denominated senior unsecured green bond offering in the chemical sector by a U.S. issuer with an investment-grade rating.

The funds obtained from the bond offering will be used to support projects that align with Eastman's sustainability objectives of addressing climate change, promoting a circular economy, and contributing to social responsibility.

“I am proud to announce that we have successfully issued our first green bond,” said Senior Vice President and Chief Financial Officer Willie McLain. “Sustainability is at the heart of our corporate strategy, and this green bond issuance is a testament to our commitment to creating solutions that address environmental and social challenges faced today.”

Eastman plans to use the net proceeds from the $500 million offering to fund or refinance eligible projects related to circular economy production technologies and processes, eco-efficient and/or circular economy adapted technologies and products, pollution prevention and control, energy efficiency, renewable energy, and/or sustainable water and wastewater management, in line with its Green Financing Framework.

Eastman will provide an annual allocation and impact report until the net proceeds are fully allocated, and in case of any significant changes until the maturity date. This report will detail the amount and percentage of net proceeds allocated to each eligible project category, the balance of unallocated proceeds, and feasible impact reporting for each category. The report will be available on Eastman's website.

Eastman Chemical Company has a strong focus on sustainability, with a sustainability strategy called A Better Circle. This strategy includes measurable goals to meet the expectations of stakeholders in terms of environmental, social, and governance (ESG) standards.

Eastman aims to create sustainable solutions, have a positive impact on society, and provide financial value to shareholders. The strategy is structured around three pillars: mitigating climate change, mainstreaming circularity and caring for society. In September 2022, Eastman released a comprehensive Sustainability Report that is available to the public.

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Source: Eastman