Johnson Controls Prices Inaugural Green Bond

Rhea-AI Summary

Johnson Controls (NYSE: JCI) announced the pricing of its inaugural Green Bond offering, raising $625 million in ten-year notes aimed at funding sustainability projects aligned with the company's 2025 goals. Projects include eco-efficient products, green buildings, and renewable energy initiatives. The bond is part of a broader commitment to enhance sustainability performance, reflected in previous financing tied to sustainability metrics. The transaction is expected to close on Sept. 11, 2020, facilitated by multiple financial institutions.

Positive

• Raised $625 million through inaugural Green Bond, enhancing liquidity for sustainability projects.
• Investment focus includes eco-friendly buildings and renewable energy, aligning with global sustainability trends.
• Demonstrates commitment to sustainability, potentially attracting environmentally conscious investors.

Negative

• None.

CORK, Ireland, Sept. 8, 2020 /PRNewswire/ -- Today, Johnson Controls (NYSE: JCI), the global leader for smart and sustainable buildings, announced the pricing of its first Green Bond offering of $625 million in ten-year notes. The net proceeds will support projects that focus on sustainability and support the Company's 2025 Sustainability goals.

"Our products and services empower our customers and communities to consume less energy and conserve resources, which is why I believe there will be an enthusiastic response to this bond offering. We believe that the utilization of green bond financing further demonstrates that sustainability is at the heart of our vision and values," said George Oliver, chairman and CEO.

This is the second sustainability driven financing project for Johnson Controls. In 2019, Johnson Controls became one of the first industrial companies to tie its senior revolving credit facilities to specific sustainability metrics in the U.S. syndicated loan market.

The eligible green projects in which Johnson Controls will invest are detailed in its Green Finance Framework, which is aligned to the four components of both the ICMA Green Bond Principles 2018 and the Green Loan Principles 2020. The positive environmental impact of eligible green projects are mapped to the United Nations Sustainable Development Goals.

Categories of eligible projects include:

• Eco-efficient and/or circular economy adapted products, production technologies and processes
• Green buildings
• Pollution prevention and control
• Sustainable water and wastewater management
• Clean transportation
• Renewable energy

Sustainalytics provided a second party opinion on Johnson Controls' Green Finance Framework.

Johnson Controls' 2025 sustainability goals include the following:

• 25% reduction in greenhouse gas emissions intensity
• 25% reduction in energy intensity
• 10% water reduction at water-stressed locations
• 25% reduction in recordable safety incidents
• Increase diverse supplier spend at a rate exceeding revenue growth

Tyco Fire & Security Finance, S.C.A., a subsidiary of the Company, is a co-issuer of the green bonds.  The closing for the transaction is expected to occur on Sept. 11, 2020, subject to certain customary closing conditions.

BofA Securities, ING, Citigroup, US Bancorp, BBVA and TD Securities have served as joint book-running managers to facilitate the transaction. ING has served as the sole Green Structuring Advisor.

The Company's green finance framework is available on the Company's website.

The offering of the green bonds is being made pursuant to an effective shelf registration statement, prospectus and related prospectus supplement. Copies of the prospectus supplement and the base prospectus, may be obtained by contacting BofA Securities, Inc. toll-free at 1-800-294-1322; or ING Financial Markets LLC at 646-424-8972. Investors may also obtain these documents for free by visiting EDGAR on the Securities and Exchange Commission's website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Johnson Controls:
At Johnson Controls, we transform the environments where people live, work, learn and play. From optimizing building performance to improving safety and enhancing comfort, we drive the outcomes that matter most. We deliver our promise in industries such as healthcare, education, data centers and manufacturing. With a global team of 105,000 experts in more than 150 countries and over 130 years of innovation, we are the power behind our customers' mission. Our leading portfolio of building technology and solutions includes some of the most trusted names in the industry, such as Tyco®, YORK®, Metasys®, Ruskin®, Titus®, Frick®, Penn®, Sabroe®, Simplex®, Ansul® and Grinnell®.

Johnson Controls International plc Cautionary Statement Regarding Forward-Looking Statements

Johnson Controls International plc has made statements in this communication that are forward-looking and therefore are subject to risks and uncertainties. All statements in this document other than statements of historical fact are, or could be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "forecast," "project" or "plan" and terms of similar meaning are also generally intended to identify forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Johnson Controls cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond Johnson Controls' control, that could cause actual outcomes to differ materially from those expressed or implied by such forward-looking statements, including, among others, risks related to: Johnson Controls' ability to manage general economic, business and geopolitical conditions, including the impacts of natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as the COVID-19 pandemic, any delay or inability of Johnson Controls to realize the expected benefits and synergies of recent portfolio transactions such as the merger with Tyco and the disposition of the Power Solutions business, changes in tax laws (including but not limited to the Tax Cuts and Jobs Act enacted in December 2017), regulations, rates, policies or interpretations, the loss of key senior management, the tax treatment of recent portfolio transactions, significant transaction costs and/or unknown liabilities associated with such transactions, the outcome of actual or potential litigation relating to such transactions, the risk that disruptions from recent transactions will harm Johnson Controls' business, the strength of the U.S. or other economies, changes to laws or policies governing foreign trade, including increased tariffs or trade restrictions, energy and commodity prices, the availability of raw materials and component products, currency exchange rates, maintaining the capacity, reliability and security of our information technology infrastructure, the risk of infringement or expiration of intellectual property rights, work stoppages, union negotiations, labor disputes and other matters associated with the labor force, the outcome of litigation and governmental proceedings and cancellation of or changes to commercial arrangements.  A detailed discussion of risks related to Johnson Controls' business is included in the section entitled "Risk Factors" in Johnson Controls' Annual Report on Form 10-K for the 2019 fiscal year filed with the SEC on November 21, 2019, which is available at www.sec.gov. The description of certain of these risks is supplemented in Item 1A of Part II of Johnson Controls' subsequently filed Quarterly Reports on Form 10-Q. Shareholders, potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on such statements. The forward-looking statements included in this communication are made only as of the date of this document, unless otherwise specified, and, except as required by law, Johnson Controls assumes no obligation, and disclaims any obligation, to update such statements to reflect events or circumstances occurring after the date of this communication.

INVESTOR CONTACTS:

Antonella Franzen
Direct: 609.720.4665
Email: antonella.franzen@jci.com

Ryan Edelman
Direct: 609.720.4545
Email: ryan.edelman@jci.com  

MEDIA CONTACT:

Fraser Engerman
Direct: 414.308.8321
Email: fraser.engerman@jci.com

 

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SOURCE Johnson Controls International plc

FAQ

What is Johnson Controls' Green Bond offering amount?

Johnson Controls announced an inaugural Green Bond offering of $625 million.

When is the closing date for Johnson Controls' Green Bond transaction?

The transaction is expected to close on September 11, 2020.

What projects will the proceeds from the Green Bond support?

The proceeds will support projects focused on sustainability, including green buildings and renewable energy.

How does Johnson Controls plan to achieve its 2025 sustainability goals?

Johnson Controls aims for significant reductions in greenhouse gas emissions, energy intensity, and enhanced water management.

Which institutions facilitated the Green Bond offering for Johnson Controls?

BofA Securities, ING, Citigroup, US Bancorp, BBVA, and TD Securities served as joint book-running managers.