Semiconductor Industry’s first green bond

Ana­log Devices (ADI) announced the suc­cess­ful clos­ing of the first green bond offer­ing in the semi­con­duc­tor indus­try. The company’s green bond issuance con­sist­ed of $400 mil­lion aggre­gate prin­ci­pal amount of 2.950 % senior unse­cured notes due April 2025.

“At ADI, we are com­mit­ted to engi­neer­ing a sus­tain­able future and this is an impor­tant next step in dri­ving sus­tain­able growth for all ADI stake­hold­ers. We are proud to lead the semi­con­duc­tor indus­try with our green bond issuance,” said Vin­cent Roche, Pres­i­dent and CEO of Ana­log Devices.

ADI intends to use the net pro­ceeds from the offer­ing to finance or refi­nance eli­gi­ble projects that offer sus­tain­abil­i­ty ben­e­fits, fur­ther­ing the company’s com­mit­ment to envi­ron­men­tal sus­tain­abil­i­ty. The eli­gi­ble cat­e­gories for the use of the net pro­ceeds – renew­able ener­gy, ener­gy effi­cien­cy, green build­ings, sus­tain­able water and waste­water man­age­ment, pol­lu­tion pre­ven­tion and con­trol, clean trans­porta­tion, and eco-effi­cient and/or cir­cu­lar econ­o­my adapt­ed prod­ucts, pro­duc­tion tech­nolo­gies and process­es – are designed to pro­tect and regen­er­ate the envi­ron­ment and are in align­ment with the Unit­ed Nations Sus­tain­able Devel­op­ment Goals.

“We were very pleased with the sig­nif­i­cant insti­tu­tion­al investor inter­est for our green bond offer­ing. This issuance fur­ther strength­ens ADI’s finan­cial posi­tion and diver­si­fies our debt investor base,” said Prashanth Mahen­dra-Rajah, CFO of Ana­log Devices.

In con­nec­tion with the green bond, ADI worked with Sus­tain­a­lyt­ics, a provider of envi­ron­men­tal, social and cor­po­rate gov­er­nance research and rat­ings. Sus­tain­a­lyt­ics reviewed ADI’s green bond frame­work and opined that it is cred­i­ble and aligns with the four core com­po­nents of the Green Bond Prin­ci­pals 2018.

The notes were offered pur­suant to an effec­tive reg­is­tra­tion state­ment under the Secu­ri­ties Act of 1933 (the “Secu­ri­ties Act”) by means of a prospec­tus and relat­ed prospec­tus sup­ple­ment, copies of which may be obtained by vis­it­ing Edgar on the SEC web­site at www.sec.gov. Alter­na­tive­ly, copies may be obtained by call­ing J.P. Mor­gan Secu­ri­ties LLC at (212) 834‑4533 or Cit­i­group Glob­al Mar­kets Inc. at 1–800-831‑9146.

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