Apple today issued a $1 billion green bond to fund renewable energy generation, according to Bloomberg.
Apple reportedly said it plans to use the proceeds to finance projects involving renewable energy resources and energy efficiency, including advancing its goal of achieving a closed-loop supply chain, through which products are made using only renewable resources and recycled material.
By turning to the debt market, Apple is able to fund its sustainability initiatives without tapping into its offshore cash reserves. Those dollars would be subjected to a 35 percent corporate tax rate if they were repatriated in the United States.
U.S. President Donald Trump has reportedly proposed offering a one-time tax holiday where companies like Apple can repatriate large amounts of foreign cash at a reduced tax rate of between 10 and 15 percent. But, as of this month, the relevant corporate tax laws have yet to be reformed in the country.
Apple’s bond offering comes just two weeks after Trump withdrew the United States from the Paris climate accord, an agreement signed by over 140 countries that vow to reduce greenhouse gas emissions in an effort to mitigate climate change. Apple CEO Tim Cook said Trump’s decision was “wrong for our planet.”
An excerpt of Cook’s internal memo to Apple employees:
Climate change is real and we all share a responsibility to fight it. I want to reassure you that today’s developments will have no impact on Apple’s efforts to protect the environment. We power nearly all of our operations with renewable energy, which we believe is an example of something that’s good for our planet and makes good business sense as well.
Apple’s preliminary prospectus supplement filed with the Securities and Exchange Commission today confirms the bonds will mature in 2027. The sale was arranged by Goldman Sachs, Bank of America Merrill Lynch, and J.P. Morgan.
Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.
Discuss this article in our forums
Source From: macrumors.com.
Original article title: Apple Issues Billion Green Bond Sale to Fund Renewable Energy.
This full article can be read at: Apple Issues Billion Green Bond Sale to Fund Renewable Energy.