- The first bonds issued under the new framework are senior unsecured notes due 2033
- Interest rates are tied to the firm’s commitment to increase leadership diversity and to reduce greenhouse gas emissions
- Proceeds will be used to repay a portion of Jacobs’ outstanding revolver
Jacobs announced that it closed an inaugural offering of $500 million of senior unsecured notes due 2033 under its newly published Sustainability-Linked Bond Framework. The Framework was developed as a crucial element of Jacobs’ PlanBeyond 2.0 sustainable business strategy launched in the summer of 2021 and is a key milestone in further incorporating sustainability into the company’s financing strategy.
The interest rates payable on the bonds are tied to Jacobs’ commitment to increase gender diversity in leadership positions, and to reduce greenhouse gas emissions, each as described in the Framework. Aligned with its purpose to create a more connected, sustainable world, Jacobs’ environmental, social and governance (ESG) efforts are core to the company’s values and culture and this offering further establishes Jacobs as a sustainability leader.
See related article: Jacobs Launches New Climate Action Plan and Climate Commitments
Jacobs CFO Kevin Berryman said, “As part of our PlanBeyond 2.0 business strategy, we developed six Sustainable Business Objectives to sit at the heart of our company strategy, and this offering, which follows the refinancing of our credit facilities as sustainability-linked loans, was the next step in our journey. This new Framework demonstrates our commitment to incorporating inclusion, innovation and inspiration into the very fabric of the company, defining our aspirations for how we as an organization and as individuals can each play a part in creating a sustainable future for all.”
Jacobs published the Sustainability-Linked Bond Framework, and commissioned S&P Global Ratings to issue a Second Party Opinion on the Framework’s alignment to the Sustainability-Linked Bond Principles. The bonds have been issued by Jacobs Engineering Group Inc. and unconditionally guaranteed by Jacobs. The net proceeds are being used to repay a portion of the amounts outstanding under Jacobs’ revolving credit facility.
BofA Securities, Inc., Wells Fargo Securities, LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp. and TD Securities (USA) LLC acted as joint book-running managers for the offering and BofA Securities, Inc. also acted as Sustainability Structuring Agent for the offering.
