American Express issues green and social development bond

American Express Co., the nation’s leading provider of small business business cards, has launched its first-ever environmental and social initiative bond. The bond will test whether there are potential investors interested in investing in the future of environmental and social affairs.

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Specifically, the bond will target global investors interested in environmental investments. The company has appointed Bank of America Corp, Morgan Stanley, HSBC Holdings Plc and Wells Fargo & Co. to organize and manage the bond.

Related: Going Green by Investing in the Environment

An insider on the matter told Bloomberg that the bond will be made available to all interested parties around the world. However, it will focus exclusively on environmental, social and governance issues. Additionally, there are possibilities of a dollar-dominated show to follow. This could lead to the inaugural Sustainability Ticket offering in the future if all goes well.

Proceeds from the bond would be used to fund eligible green and social projects. These would include purchasing and making recycled materials from Amerca Express consumer and business cards. Additionally, the money will be pumped into waste recycling projects, green buildings, and the improvement of various vendors and commercial vendors. Plus, supporting women and LGBTQ-run vendors.

American Express’ decision comes at a time when companies and governments around the world are selling ESG-related debt at record speed. These projects have proven to be essential in providing funds to achieve the sustainability goals of many companies. Last year, global sales of green, social and sustainability bonds broke through the trillion dollar cap for the first time. It is expected that this year the performance of these bonds will be even better.

America Express claims to be carbon neutral since 2018 on its website. The giant card company says 100% of its businesses use renewable energy across the world. Its decision to issue a global green bond follows in the footsteps of competitors such as Mastercard and Visa, which have ESG-linked bond issuers.

Going through Bloomberg

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Joel C. Hicks