- The first bonds issued under the new framework are senior unsecured notes due 2033
- Interest rates are tied to the firm’s commitment to increase leadership diversity and to reduce greenhouse gas emissions
- Proceeds will be used to repay a portion of Jacobs’ outstanding revolver
Jacobs, a technology, consulting, and business solutions company, completed its first sustainability-linked bond offering today, raising $500 million, with interest rates on the ten-year bond tied to the company’s diversity and climate goals.
The offering comes on the heels of the company’s recent publication of its Sustainability-Linked Bond Framework, which the company described as a “critical component” of its sustainable business strategy, PlanBeyond 2.0. Jacobs launched the strategy in 2021, intending to integrate sustainability into its operations and client solutions per the United Nations Sustainable Development Goals (SDGs).
Jacobs released its Sustainability-Linked Bond Framework and enlisted S&P Global Ratings to provide a Second Party Opinion on its adherence to the Sustainability-Linked Bond Principles. The bonds were issued by Jacobs Engineering Group Inc. and are backed by a full guarantee from Jacobs. The funds raised will be used to pay off a portion of the outstanding balance on Jacobs’ revolving credit facility.
The bond interest rates are linked to Jacobs’ commitment to increasing gender diversity in leadership positions and reducing greenhouse gas emissions, as described in the Framework. Jacobs’ environmental, social, and governance (ESG) efforts are core to the company’s values and culture, aligned with its purpose of creating a more connected, sustainable world, and this offering further establishes Jacobs as a sustainability leader.
BofA Securities, Inc., Wells Fargo Securities, LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp. and TD Securities (USA) LLC acted as joint book-running managers for the offering and BofA Securities, Inc. also acted as Sustainability Structuring Agent for the offering.