Mastercard issues $600 million Sustainability Bond

Mastercard today announced that it has successfully priced a $600 million Sustainability Bond at a fixed rate of 1.90%. This milestone further supports the company’s work to build an inclusive and sustainable digital economy through commercially sustainable social impact. Mastercard’s global commitments include reaching net zero emissions by 2050 and bringing 1 billion people and 50 million small businesses into the digital economy by 2025.

The proceeds from the Sustainability Bond will support significant progress already made towards maximizing carbon reduction, supporting environmental choices for customers, and fostering inclusive growth. Investors will now have the opportunity to contribute to the advancement of these efforts. Specific green and social projects will align across eleven areas, as outlined in the Mastercard Sustainability Financing Framework and will contribute to the advancement of the UN Sustainable Development Goals.

Last year, the company reached a global milestone of achieving financial inclusion for 500 million previously unbanked people. In 2020 Mastercard also committed $250 million to supporting the recovery of small businesses globally and $500 million to closing the racial wealth and opportunity gap in the U.S. starting in seven cities. 

The 10-year bond will pay interest semi-annually at a fixed rate of 1.90%.  Mastercard expects to allocate the net proceeds from the Sustainability Bond to eligible initiatives within 3 years of the transaction. Accompanying this 10-year Sustainability Bond was a traditional $700M 30-year bond that will pay interest semi-annually at a fixed rate of 2.95%.