Starbucks (SBUX) is reportedly planning to invest big in sustainability.
The company is selling $500 million worth of bonds with the express purpose of funding eco-friendly practices, according to Securities and Exchange Commission filings. The 10-year senior notes have an interest rate of 2.45%, which is 0.74% higher than government bonds. The Huffington Post reports that this is the first time Starbucks is specifically asking investors to fund sustainability efforts.
Proceeds from the sale of these bonds are estimated to be about $495.6 million. That money will allow Starbucks to buy coffee from farmers who adhere to Coffee and Farmer Equity Practices, which are principles established by Starbucks and Conservation International ensuring that coffee is grown and sourced responsibly. The standards apply to both working conditions and treatment of workers as well as environmental conservation.
The half-a-billion dollars will also help Starbucks develop and operate farmer support centers and agronomy research and development centers. Additionally, the money will help subsidize the coffee chain’s Global Farmer Fund program, which provides farmers with loans to help them manage risk and strengthen their businesses.
Starbucks spokesperson Linda Mills told Coins2Day that the company will have more to share about this initiative after the market closes on Monday.