Goldman Sachs Issues $800 Million Sustainability Bond

  • The bank’s first Sustainability Bond a key step to Accelerate Climate Transition and Advance Inclusive Growth

  • Bond contributes towards Goldman Sachs’ sustainable finance commitment including a target to deploy $750 billion in sustainable financing, investing and advisory activity by 2030
     

NEW YORK, February 12, 2021 - The Goldman Sachs Group, Inc. (NYSE: GS) today announced that it has settled an $800 million Sustainability Bond to accelerate climate transition and advance inclusive growth across nine core thematic areas: clean energy, sustainable transport, sustainable food and agriculture, waste and materials, ecosystem services, accessible and innovative healthcare, accessible and affordable education, financial inclusion, and communities. The bond is unique in that eligible categories are based on the above mentioned nine key impact themes that also underpin Goldman Sachs’ sustainable finance commitment. The commitment includes a target to deploy $750 billion across climate transition and inclusive growth by 2030.

The bond offering is aligned with Goldman Sachs’ broader integration of the aforementioned themes across our businesses and will further expand the bank’s role in catalyzing capital to address the pressing environmental and social issues facing society today.

“The launch of our first sustainability bond shows that investors can drive innovative solutions by using our firm’s extensive platform and resources”, said David Solomon, Chairman and Chief Executive at Goldman Sachs. “We’ve said building a low-carbon, inclusive economy is a business imperative, and now we’re demonstrating our commitment by using the same financial toolkit we recommend to our clients”

“We are committed to executing on our $750 billion target across investing, financing and advisory activities by 2030. The proceeds from our sustainability bond will advance our focus on climate transition and inclusive growth.” said Dina Powell McCormick, global head of Sustainability and Inclusive Growth at Goldman Sachs.

“Goldman Sachs was the lead book runner with a syndicate otherwise comprised entirely of diverse and minority led broker dealers”, said Carey Halio, Deputy Treasurer at Goldman Sachs. “The 5-year bond, which is callable in 4-years, will pay interest semi-annually at a fixed rate of 0.855% for the first four years, and then quarterly at a floating rate of SOFR+0.609% in the final year, if not called.”

Goldman Sachs unveiled its Sustainability Issuance Framework which was reviewed by Sustainalytics, a Second Party Opinion Provider and allows for future programmatic issuances.

Goldman Sachs will publish an annual update regarding the allocation of the proceeds which will include details on the expected and realized qualitative and, where feasible, quantitative environmental and social impact.
 

The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.

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