Eastman Chemical Company recently announced that it has closed its offering of $500 million principal amount of 5.750% Senior Unsecured Notes due 2033, which is the first investment grade USD-denominated senior unsecured green bond offering by a U.S. issuer in the chemical sector. Net proceeds will be allocated to eligible projects to advance Eastman’s sustainability goals of mitigating climate change, mainstreaming circular economy, and caring for society.

 

“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 testament of our commitment to creating solutions that address environmental and social challenges faced today.”

 

Eastman intends to allocate an amount equivalent to the net proceeds of the $500 million offering to finance or refinance, in whole or in part, to one or more new or existing eligible projects in the following categories as outlined in Eastman’s Green Financing Framework:

 

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.

 

Eastman has committed to provide an allocation and impact report annually until full allocation of the net proceeds from the offering and, in the event of any material changes, until the relevant maturity date, which will be available on Eastman’s website. This report will provide the amount of net proceeds allocated to eligible project categories, the percentage of allocation of net proceeds between financing/refinancing of existing and new projects, the remaining balance of unallocated proceeds at the end of the reporting period, if any, and impact reporting, to the extent feasible, at the level of each eligible project category.