Pfizer has completed a $1.25 billion, 10-year “sustainability” bond paying interest semi-annually of 2.625% and maturing April 1, 2030, which will be used to manage the company’s environmental and social impact. This is Pfizer’s first sustainability bond, and the first bond of its kind for a biopharmaceutical company, according to the company.

Pfizer says it will use bond proceeds to manage its environmental impact and improve patient access to medicines and vaccines, especially among underserved populations.

The company says the bond proceeds will focus on strategies to become more energy efficient, conserve water, reduce waste, increase recycling associated with operations, and construct green buildings. Other planned investments in physical infrastructure include application of technology that result in energy savings at manufacturing and R&D sites, and commercial offices.

The company says proceeds will be used to make capital investments in manufacturing and development capacity that ensure medicines and vaccines needed and procured by governments and public health agencies are available in line with recommendations from global public health organizations. This includes work to address the global COVID-19 pandemic and the threat of antimicrobial resistance.

Additionally, Pfizer says the bond proceeds will support vulnerable population groups, including women, children under five years of age, people temporarily displaced due to natural disasters and refugees. Proceeds will also be used to strengthen health systems in low- and middle-income countries, including grants structured to motivate other private capital and other innovative approaches to help address infectious disease in these underserved populations.

Pfizer says it will issue a report annually on the allocation of proceeds and the resulting outcomes, beginning one year from the date of issuance, including expected outcomes and impact metrics. Reporting on the use of proceeds will be accompanied by a statement from management confirmed by an examination report from an independent accountant. 

Source: Pfizer