Apple has made one of the largest-ever corporate issues of environmentally-friendly debt in Europe.
The tech giant sold 2 billion euros (about US$2.2 billion) of six and 12-year bonds on Thursday, according to data compiled by Bloomberg. The article says Apple will use proceeds to reduce its carbon footprint, use greener materials in its products and conserve resources.
A green bond is a bond specifically earmarked to be used for climate and environmental projects. These bonds are typically asset-linked and backed by the issuer's balance sheet, and are also referred to as climate bonds.
Green bonds are designated bonds intended to encourage sustainability and to support climate-related or other types of special environmental projects. More specifically, green bonds finance projects aimed at energy efficiency, pollution prevention, sustainable agriculture, fishery and forestry, the protection of aquatic and terrestrial ecosystems, clean transportation, sustainable water management and the cultivation of environmentally friendly technologies.
According to Investopedia, green bonds come with tax incentives such as tax exemption and tax credits, making them a more attractive investment compared to a comparable taxable bond.