New York Citi today announced the issuance of the firm’s first USD-denominated benchmark green bond, further enhancing its commitment to environmental finance and the green bond market. This bond follows Citi’s inaugural Euro-denominated green bond benchmark issued in January 2019.
An amount equivalent to the net proceeds of this green bond will fund renewable energy, sustainable transportation, water quality and conservation, energy efficiency and green building projects as outlined in the environmental eligibility criteria described in Citi’s Green Bond Framework.
In the deal, which priced on May 7, 2020, Citi issued $1.5 billion four-year non-call three fixed to floating rate notes. The transaction marks the second green bond offering from Citigroup Inc. in public benchmark format.
“With our second benchmark transaction and first USD offering, Citi continues to demonstrate its leadership in the green bond market while meeting growing investor demand for sustainable finance products globally,” said Michael Verdeschi, Treasurer of Citi.
Citi made a 10-year commitment to finance and facilitate $100 billion in activities that provide environmental benefits and reduce the impacts of climate change, beginning in 2014. Citi exceeded that goal in 2019—four years ahead of schedule—and continues to partner with its clients to finance climate solutions and reduce climate risk. In addition, Citi has been a leader in climate assessment and disclosure in alignment with the Task Force on Climate-related Financial Disclosures Recommendations, and has signaled its commitment to transitioning to a sustainable, low-carbon economy as the first U.S.-based signatory of the Principles for Responsible Banking. Citi released its 2019 Environmental, Social and Governance (ESG) Report in April 2020, detailing its performance across a number of priority ESG areas.
“Citi’s first U.S. dollar green bond is another milestone in our commitment to sustainable finance,” said Val Smith, Citi’s Chief Sustainability Officer. “We remain focused on developing innovative products and solutions that accelerate green financing, anticipate client demand and help drive sustainable growth.”
The consultancy Sustainalytics has reviewed Citi’s Green Bond Framework and has confirmed in its Second Party Opinion that it is aligned with the overall sustainability objectives of Citi and with the ICMA Green Bond Principles. Following its inaugural green bond issuance in January 2019, Citi also issued its first Citi Green Bond Report in September 2019, detailing the allocation and impact of the proceeds of Citi Green Bonds.
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