O-I Glass Completes Full Allocation for Second Round of Green Bond Offerings
O-I Glass has completed the full allocation of proceeds from its second round of Green Bond offerings, totaling $690 million and €600 million, to advance its climate-change strategy. The funds were directed to Eligible Green Projects, including renewable energy, energy efficiency, sustainable water management, and eco-friendly production technologies. The initiative aims to cut CO2 emissions, reduce energy consumption, and preserve natural resources. Notable projects include MAGMA technology, improvements at the Zipaquirá Colombian plant, and the GOAT furnace in France. Sustainalytics provided a favorable second-party opinion on the environmental impact and credibility of the projects.
- Completion of $690 million Green Bond allocation due 2031.
- Completion of €600 million Green Bond allocation due 2028.
- Funds directed to projects enhancing renewable energy, energy efficiency, and sustainable water management.
- Innovative MAGMA technology reduces environmental footprint and promotes premium quality glass.
- Zipaquirá plant improvements expected to lower CO2 emissions by up to 15% per ton.
- GOAT furnace in France reduces CO2 emissions by up to 20% and NOX emissions by up to 60%.
- Development of Estampe bottle in France using up to 80% recycled content, significantly cutting carbon emissions.
- Significant conservation achievements through cullet investment, including 5.7 million metric tons of CO2 saved.
- The sustainability and 'green' nature of projects are subject to evolving definitions, expectations, and regulations.
- Allocation of funds and related strategies are subject to certain disclaimers, qualifiers, and risks.
Insights
O-I Glass has successfully allocated the proceeds from its second round of Green Bond offerings totaling
From a financial perspective, the deployment of these funds into renewable energy, energy efficiency and other sustainable projects not only aligns with global environmental goals but may also provide long-term cost savings. For instance, investments in cullet utilization and advanced technologies like MAGMA can potentially reduce operational costs related to energy and raw materials. Additionally, these investments might enhance O-I Glass's market position as a leader in sustainable practices, attracting ESG (Environmental, Social, Governance) focused investors.
However, it is important to consider the associated risks. Green Bonds can often come with stringent reporting requirements and increased scrutiny, which could impose additional administrative burdens. Furthermore, the evolving nature of sustainability standards means that what is considered 'green' today may change, impacting compliance and reputation.
Overall, the successful allocation of these Green Bonds positions O-I Glass well for future growth and resilience in an increasingly environmentally conscious market.
The allocation of proceeds from O-I Glass's Green Bond offerings to various Eligible Green Projects underlines the company's commitment to reducing its carbon footprint and advancing its climate-change strategy. The use of cullet (recycled glass) is particularly noteworthy. By utilizing cullet, O-I Glass has managed to achieve notable environmental savings, including the reduction of approximately 5.7 million metric tons of CO2 and conserving significant amounts of energy and raw materials. Such initiatives are important in lowering the overall environmental impact of glass production.
Investments in technologies like MAGMA and GOAT further exemplify O-I's focus on innovation in sustainability. For instance, MAGMA technology's modular nature and reduced environmental footprint can serve as a model for future production methods. Similarly, the energy efficiency improvements at the Zipaquirá plant and the GOAT furnace's reduced emissions highlight meaningful advancements in industrial processes.
These environmental efforts not only contribute to global sustainability targets but also enhance the company's reputation among eco-conscious consumers and stakeholders. Nonetheless, it is important to monitor the actual implementation and ongoing performance of these projects to ensure they deliver the anticipated environmental benefits.
In conclusion, O-I Glass's environmental initiatives demonstrate a proactive approach to sustainability, likely benefiting the company in terms of both compliance and public perception.
- O-I completes full allocation of
$690 Million due 2031, issued by Owens-Brockway Glass Container, Inc. - O-I completes full allocation of €600 Million due in 2028, issued by O-I European Group B.V.
- Allocations mark another significant step forward in company climate-change strategy
PERRYSBURG, OH / ACCESSWIRE / May 16, 2024 / O-I Glass, Inc. ("O-I Glass", "O-I" or the "Company") announced that the Company has completed full allocation of the proceeds from its second round of Green Bond offerings to advance the company's climate-change strategy. In May of 2023, Owens-Brockway Glass Container Inc., and OI European Group B.V. launched private Green Bond offerings of
The Green Bond proceeds were spent on Eligible Green Projects as defined in O-I's Green Financing Framework (the "Framework"), developed based on the Green Bond Principles and the Green Loan Principles.
The Company engaged Sustainalytics to provide a second-party opinion, which noted the Framework's outlined Eligible Green Projects are "expected to deliver positive environmental impact" and are "credible from a transition perspective."
The Green Bond proceed expenditures enriched O-I's climate-change strategy through the following Eligible Green Projects: renewable energy reliance, energy efficiency, sustainable practices in water and wastewater management, environmentally friendly production technologies and processes, circular economy, and environmentally friendly adapted products.
Additional details of the Company's allocation are provided in the above tables.
"The road to sustainability, for O-I, is paved by innovation" said Meena Dafesh, Vice President, Treasurer for O-I. "We are continuously working across our entire ecosystem of partners to advance the sustainability of our products and processes. Through the use of Green Bond proceeds, and other visionary approaches, O-I is making tangible progress toward our ambitious sustainability goals and helping our customers to advance in their aspirations as well."
The commitment to cullet (recycled glass) investment underscores the company's strides toward a sustainable future by immediately reducing carbon emissions, lowering energy consumption, and preserving natural resources. With the amount of cullet designated for this initiative, the company has achieved significant conservation efforts including, approximately:
- 5.7 million metric tons of CO2;
- 4.7 million MwH of energy;
- 6.3 million tons of silica sand;
- 2.0 million tons of soda ash; and
- 1.8 million tons of limestone and dolomite
These sustainable savings coming from cullet utilization are further enhanced by additional eco-friendly investments made by the company that are designated to that initiative, which include:
- MAGMA technology, which is designed for flexible, modular glass production and can reduce the environmental footprint of glass production. Facilities built for MAGMA will feature a smaller melter and will be constructed using more sustainable methods and materials. MAGMA technology will enable advanced technologies, including light-weighting potential, on-off capability, and can include feed-forward and feed-back control loops to promote premium quality glass.
- Advances in the O-I Zipaquirá Colombian plant are set to improve energy efficiency, lowering CO2 emissions by up to
15% per ton produced on the new furnace. In addition to the decarbonization impacts, the new technologies also reduce NOX emissions by up to 50 % compared to a traditional air fuel-fired furnace and allow for higher usage of recycled glass. - A Gas Oxy Advanced Technology (GOAT) furnace in O-I's Gironcourt France plant, which uses oxygen to reduce CO2 emissions by up to
20% and NOX emissions by up to60% . - The R&D team at O-I developed the "Estampe" bottle in France to leverage greater recycled content, up to
80% or more on average - well above the current European average of50% recycled content. The innovative Estampe bottle strengthens the overall sustainability with a reduced carbon footprint - about25% less carbon emissions compared to conventional 500g wine bottles.
Management's assertions on the allocation of an amount equal to net proceeds to qualifying Eligible Green Projects as well as the examination reports of our independent accountants are available on the O-I website, along with information on O-I's overall sustainability agenda.
In November 2019, O-I became the first U.S. high yield industrial green bond issuer with the company's inaugural green bond issuance, and O-I remains committed to supporting our climate-change strategy through sustainable financings. To learn more about O-I's Green Financing Framework, offerings, and allocation of net proceeds to qualifying eligible green projects, visit: http://o-i.com/sustainability
IMPORTANT NOTES ABOUT THIS INFORMATION
Perceptions of the sustainability and "green" nature of activities and projects are subject to varying definitions, expectations, and regulations, which continue to evolve. Certain of these decisions involve notable discretion and, as such, we cannot guarantee that the activities discussed above align to any particular stakeholder's preferences or any specific taxonomy regarding sustainable or green activities. Moreover, our Green Financing Framework, the allocation of funds to Eligible Green Projects referenced in this announcement, and related aspects of our climate-change strategy are subject to certain important disclaimers, qualifiers, and risks, including those included in our filings with the Securities and Exchange Commission, that should be reviewed in concert with any assessment of the characterization of our activities hereunder.
ABOUT O-I GLASS
At O-I Glass, Inc. (NYSE: OI), we love glass, and we are proud to be one of the leading producers of glass bottles and jars around the globe. Glass is not only beautiful, it is also pure, healthy, and completely recyclable, making it the most sustainable rigid packaging material. Headquartered in Perrysburg, Ohio (USA), O-I is the preferred partner for many of the world's leading food and beverage brands. We innovate in line with customers' needs to create iconic packaging that builds brands around the world. Led by our diverse team of approximately 23,000 people across 68 plants in 19 countries, O-I achieved revenues of
o-i.com / Facebook / Twitter / Instagram / LinkedIn
contact:
JIM WOODS
Corporate Affairs
James.Woods@o-i.com
View additional multimedia and more ESG storytelling from O-I Glass, Inc. on 3blmedia.com.
Contact Info:
Spokesperson: O-I Glass, Inc.
Website: https://www.3blmedia.com/profiles/o-i-glass-inc
Email: info@3blmedia.com
SOURCE: O-I Glass, Inc.
View the original press release on accesswire.com
FAQ
What is the total amount allocated in O-I Glass's second Green Bond offerings?
What are the maturity dates for O-I Glass's Green Bonds?
What projects were funded by O-I Glass's Green Bond proceeds?
What environmental impact does the MAGMA technology have?
How will improvements at the Zipaquirá Colombian plant affect CO2 emissions?
What is the impact of the GOAT furnace at the Gironcourt plant in France?
What is unique about the Estampe bottle developed by O-I Glass?
How much CO2 has O-I Glass saved through cullet investment?
What risks are associated with O-I Glass's Green Bond projects?
