Pfizer in First-in-the-Industry Sustainability Bond

Pfizer has announced the completion of a $1.25 billion, ten-year “sustainability” bond, Pfizer’s first-ever sustainability bond and a first for a biopharmaceutical company. Proceeds from the bond, paying 2.625 percent interest semi-annually, will help manage the company’s environmental impact and support increased patient access to Pfizer’s medicines and vaccines, especially among underserved populations, and strengthen healthcare systems in low- and middle-income countries.

A focus of the bond proceeds will drive long-standing Pfizer strategies to become more energy efficient, conserve more water, reduce waste and increase recycling associated with operations and construct “green” buildings. The bond proceeds will also support vulnerable population groups including women, children under 5 years of age, and people temporarily displaced due to natural disasters and refugees who the company reaches through partnerships that address global public health emergencies.

In addition, 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.

Proceeds will also support spending 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 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. (Source: Pfizer Website, 27 March, 2020)