Alcoa Corporation (NYSE: AA) disclosed today that its subsidiary, Alcoa Nederland Holding B.V., has successfully concluded the offering of $750 million aggregate principal amount of 7.125% senior notes due 2031 (referred to as the “notes”). These notes are guaranteed on a senior unsecured basis by Alcoa and some of its subsidiaries. This issuance marks Alcoa’s debut in the realm of Green Finance Instruments, in accordance with its Green Finance Framework.
The purpose behind this endeavor is for Alcoa to utilize the net proceeds from the notes issuance to finance and/or refinance new and/or existing projects meeting specific eligibility criteria outlined within the Framework. Moreover, these funds will bolster Alcoa’s cash reserves and cater to its ongoing financial requirements, including those concerning its previously announced portfolio actions. Detailed information regarding eligibility criteria and the allocation of proceeds can be found within the Framework.
Molly Beerman, Executive Vice President and Chief Financial Officer, expressed satisfaction with the successful issuance and closure of this inaugural green bond offering, emphasizing its significance in advancing Alcoa’s sustainability agenda. She highlighted how these Green Finance Instruments underpin investments and products facilitating the transition towards a more sustainable, low-carbon economy.
Aligned with international standards, Alcoa’s Framework adheres to the Green Bond Principles set forth by the International Capital Market Association in 2021, along with the Green Loan Principles established by the Loan Market Association, the Asia Pacific Loan Market Association, and the Loan Syndications and Trading Association in 2023. This structured approach enables Alcoa to evaluate, select, and report on its green finance initiatives systematically, reinforcing its commitment to sustainability while aligning with its financing strategy.
