Visa expands commitment to sustainable future with $500 mn Green Bond Issuance

By Pavithra R

Visa , a leading global payments technology company, has announced that the firm has successfully priced its inaugural green bond offering, totaling $500 mn, paying a semi-annual coupon of 0.75% and maturing August 15, 2027. Through the issuance of Green bond, Visa aims to finance the transition to low-carbon operations and economy through expenditures that align with the sustainability platform.

The green bond will be used to help advance the company’s commitment to environmental sustainability and a sustainable payment ecosystem. In support of the commitment and in addition to its inaugural green bond, Visa has also announced the Joining of Douglas Sabo as its first chief sustainability officer.

As chief sustainability officer, Douglas Sabo will oversee Visa’s global corporate responsibility, sustainability and ESG partnerships, programs, formal reporting and communications, with a focus on sustainable living, financial inclusion, human rights, environmental sustainability, humanitarian support, strategic philanthropy, and employee volunteerism.

“As the world continues to address the urgency of climate change and other environmental challenges, we are embracing our opportunity to play a leading role in building a more sustainable world. Through our green bond offering and together with our initiatives driving inclusive economic growth, we are working to ensure people and planet both can thrive together,” said Douglas Sabo, Visa’s newly appointed chief sustainability officer.

As outlined in the Visa Green Bond Framework, the proceeds of the green bond will be used to fund projects including energy efficiency improvements, expanded usage of renewable energy sources, upgrades to buildings, employee commuter programs, water efficiency projects, and research and initiatives focused on sustainable consumer behaviors. The proceeds will also support investments in projects to inspire and foster sustainable living in support of the United Nations Sustainable Development Goals (SDGs).

“At Visa, we see a responsibility and an opportunity to use the power of our network to drive broad shifts toward a sustainable future. Our green bond offering will help us accelerate the transformation of our infrastructure and operations to reach our environmental goals. This commitment extends to appointing Visa’s first chief sustainability officer, tasked with ensuring we continue to take bold and industry-leading actions on the environment,” said Al Kelly, chairman, and chief executive officer of Visa Inc.

Recently, Dash partner Tauros launched Visa card with DashBack rewards in Mexico.

Visa will also issue an annual report on the use of proceeds from the green bond and their environmental impact. Sustainalytics, a leading independent global provider of ESG and corporate governance research and ratings to investors, provided the second party opinion on the environmental benefits of Visa’s Green Bond Framework as well as its alignment with the Green Bond Principles.