Sustainability bond offering is part of Starbucks comprehensive
approach to sustainable coffee sourcing and industry leading efforts for
positive environmental and social impacts in the global coffee supply
chain
SEATTLE--(BUSINESS WIRE)--May 16, 2016--
Starbucks Corporation (NASDAQ: SBUX) today announced that it has closed
an underwritten public offering of senior notes, including the first
U.S. Corporate Sustainability Bond. The company will use the net
proceeds from the offering of $500 million in 2.450% Senior Notes due
2026 to enhance its sustainability programs around coffee supply chain
management through Eligible Sustainability Projects. This includes
coffee purchases from suppliers verified by a third-party as complying
with Starbucks ethical sourcing verification program of Coffee and
Farmer Equity (C.A.F.E.) Practices, the development and operation of
farmer support centers in coffee growing regions, as well as short and
long term loans made through Starbucks Global Farmer Fund.
“Coffee is at the core of our business, and we intend to continue to
finance initiatives that will make a positive social and environmental
impact in our coffee supply chain as well as other areas across our
business,” said Scott Maw, chief financial officer, Starbucks.
“Issuing a bond focused on sustainable sourcing, demonstrates that
sustainability is not just an add-on, but an integral part of Starbucks,
including our strategy and finances.”
Each year, Starbucks invests significantly in its comprehensive approach
to ethically source its coffee. This includes supporting coffee farming
communities, mitigating the impact of climate change, and supporting
long-term crop stability and farm sustainability. Starbucks operates a
network of eight farmer support centers around the world
(Rwanda, Tanzania, Colombia, China, Costa Rica, Indonesia, Guatemala and
Ethiopia), and has a commitment to provide $50 million in farmer
financing in the form of short and long term loans. Starbucks also
purchased a coffee farm in Costa Rica and has turned this into a global
agronomy center. All of this is grounded in the company’s open sourced
C.A.F.E. Practices developed with Conservation International over 15
years ago. This rigorous set of best practices helps to ensure that the
methods used in growing and processing coffee are efficient, effective
and sustainable, both environmentally and socially. In 2015, 99% of
Starbucks 551 million pounds of coffee purchases were verified as
ethically sourced and Starbucks became a founding member of the
Sustainable Coffee Challenge - a call to action to make coffee the first
sustainable agricultural product in the world.
“The longevity of the coffee industry is directly linked to the social,
economic and environmental conditions of coffee communities around the
world,” said Craig Russell, executive vice president, Starbucks
Global Coffee. “This new sustainability bond offers a way for
investors to better understand the work we are doing to help ensure that
there is a future for farmers and our industry.”
Sustainalytics, a leading global provider of environmental, social and
governance (ESG) research and ratings, delivered the second opinion for
the Sustainability Bond. This independent review offers investors
additional insight into the proposed projects to be funded by the bond,
as well as the expected positive environmental and social impacts of
these projects. Sustainalytics also rates Starbucks as an ESG leader in
both overall and relative performance to its peers.
“Improving the efficiency and effectiveness of coffee farming practices
helps to strengthen the overall sustainability of the coffee supply
chain while advancing the socioeconomic conditions of coffee farmers,” said
Simon MacMahon, Sustainalytics’ Executive Vice President of Advisory
Services. “Starbucks has a significant influence on the global
coffee market and is an industry leader when it comes to supply chain
standards and sustainability initiatives. We are excited to support
Starbucks Sustainability Bond and applaud their efforts to advance
sustainability practices throughout their value chain.”
Starbucks will publish annual updates of the allocation of the proceeds
throughout the term of the sustainability bond until the proceeds have
been fully allocated to projects meeting the eligibility criteria. These
updates will be reported publicly on the Starbucks website at www.starbucks.com
and may include additional descriptions of select projects funded with
sustainability bond proceeds, and, where possible, their environmental
and/or social impacts.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically
sourcing and roasting high-quality arabica coffee. Today, with
stores around the globe, the company is the premier roaster and retailer
of specialty coffee in the world. Through our unwavering commitment to
excellence and our guiding principles, we bring the unique Starbucks
Experience to life for every customer through every cup. To share in
the experience, please visit us in our stores or online at news.starbucks.com
or www.starbucks.com.
Forward-Looking Statements
Certain statements contained in this release are “forward-looking
statements” within the meaning of applicable securities laws and
regulations, including statements about the expected closing of a public
offering or senior notes and the use of proceeds of such offering. Such
forward-looking statements are based on current management expectations
and satisfactions of certain conditions that are subject to various
risks and uncertainties, including market conditions and those risks
detailed in the Company’s filings with the Securities and Exchange
Commission, including the “Risk Factors” section of the Starbucks Annual
Report on Form 10-K for the fiscal year ended September 27, 2015, and
the prospectus and prospectus supplement delivered in connection with
the public offering of senior notes discussed in this release. The
company assumes no obligation to update any of these forward-looking
statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160516006437/en/
Source: Starbucks Corporation
Starbucks Corporation
Investor Relations:
Durga
Doraisamy, 206-318-7118
investorrelations@starbucks.com
or
Media:
Alisha
Damodaran, 206-318-7100
press@starbucks.com