Xylem Closes $1 Billion Inaugural Green Bond

23 July 2020

Xylem Inc. has  announced the successful closing of its inaugural green bond offering of  USD $1 billion in senior unsecured notes. The offering, which received strong support in the market, consisted of USD $500 million of 1.950% senior notes due in January 2028 and USD $500 million of 2.250% senior notes due in January 2031.

The proceeds will fund green projects that help improve water accessibility, water affordability, and water systems resilience, in alignment with Xylem’s Green Finance Framework.

“Solving the world’s toughest water challenges already puts sustainability at the heart of our business, and this bond offering brings sustainability to the center of our funding strategy,” said Mark Rajkowski, Xylem’s Chief Financial Officer. “We’re very pleased by the market’s enthusiastic interest in the bond. It both expands liquidity at attractive rates and provides funding capacity for green projects that are important to our customers, employees, shareholders and communities.”

This is the second sustainability-driven financing completed by the Company, which previously executed an USD $800 million revolving credit facility with a sustainability-linked pricing mechanism in March 2019. The successful offering further enhances Xylem’s robust liquidity position, and maximizes flexibility in an evolving macro-economic environment.

The green bond offering builds on the strength of the Company’s sustainability track-record, and aligns with its ambitious 2025 sustainability goals, which include the commitment to save more than 16.5 billion cubic meters of water through the use of advanced technologies.

Xylem’s 2025 sustainability goals, which underscore Xylem’s commitment to sustainability, include:
• Save more than 16.5 billion cubic meters of water through the use of advanced technologies;
• Prevent over 7 billion cubic meters of polluted water from flooding communities or entering local waterways;
• Reduce the CO2 footprint associated with the water cycle by over 2.8 million metric tons
• Provide access to clean water and sanitation solutions for at least 20 million people living at the base of the global economic pyramid; and
• Use 100% renewable energy and 100% process water recycling at its major facilities.

Press Release Courtesy of Xylem.