Mastercard issues $600m sustainability bond

Mastercard has issued a $600m sustainability bond for investors, and will use the proceeds to cut carbon, support environmental choices for customers, and foster inclusive growth.

The 10-year bond will pay interest semi-annually at a fixed rate of 1.90%, and has been approved by Sustainalytics, which rates the sustainability of companies based on their ESG performance.

“To deliver positive social and environmental impact at scale companies need to invest in the technology, insights, and partnerships to make programs commercially sustainable for the long term,” said CEO, Michael Miebach. 

“Our sustainability bond will support both social and green initiatives to drive inclusive and sustainable growth for our company and the communities we serve around the world.”

Mastercard’s global commitments include reaching net-zero emissions by 2050 and bringing one billion people and 50 million small businesses into the digital economy by 2025. 

Investors will now have the opportunity to contribute to the advancement of these efforts. Specific green and social projects will align across eleven areas, as outlined in the Mastercard Sustainability Financing Framework, and will contribute to the advancement of the UN Sustainable Development Goals. 

This comes after Mastercard last year reached a global milestone of achieving financial inclusion for 500 million previously unbanked people. It also committed $250m to supporting the recovery of small businesses globally, and $500m to closing the racial wealth and opportunity gap in the US, starting in seven cities.

“No matter where you work or live, we are all in the sustainability business; the future of people, our planet and the economy are inextricably linked,” Miebach added.

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