In May Starbucks borrowed $1 billion on behalf of ethical and sustainable coffee growers. The third and largest in a series of bonds attracted investors favorably impressed with returns from smaller offerings in 2016 and 2017.
“We are very pleased to see that our new Sustainability Bond attracted significant investor interest and was oversubscribed,” said Starbucks c.f.o. Patrick Grismer.
“The bond demonstrates Starbucks commitment to meaningful, continual progress toward our aspiration of sustainable coffee, served sustainably. It also illustrates a trend toward heavier interest from investors in our socially and environmentally focused projects – in this case supporting coffee farmers and leading in green retail,” he said.
Funds will support coffee that is verified sustainable under the Coffee and Farmer Equity (CAFE) Practices program and will also finance r&d in agronomy at coffee research and development centers.
The bond’s expanded scope will also help fund the company’s Greener Retail commitments, including the Greener Stores initiative, in cooperation with the World Wildlife Fund and SCS Global Services to design, build, and operate 10,000 stores that rely on renewable energy, practice waste reduction, and water conservation.
Funds will also foster investment in greener cups and packaging, including the rollout of Starbuck’s strawless lids and next-generation compostable cups.