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Pacific Life Announces Issuance of First Sustainable Bond
NEWPORT BEACH, Calif. – April 19, 2021 – Days after officially introducing the company’s Sustainable Bond Framework, Pacific Life announced today it has completed an inaugural $800 million Sustainability Bond offering through the Capital Markets Group of its Institutional Division.
The Sustainability Bonds were offered in the form of funding agreement-backed notes and drew the interest of over 70 investors, with more than half of the order book going specifically to environmental, social and governance (ESG)-focused investment accounts.
“This issuance is an opportunity to expand the breadth and depth of our sustainable activities,” said Joe Krum, vice president and managing director, Institutional Capital Markets Group at Pacific Life. “Perhaps, more importantly, it’s a declaration of Pacific Life’s intention to be a key ESG thought leader and to engage investors based on our shared values and aspirational goals.”
As provided in Pacific Life’s Sustainable Bond Framework, an amount equal to the net proceeds from the sale of the Sustainability Bonds will be allocated to fund green and social investments including conservation, renewable energy, and community-building initiatives such as affordable housing and education for target populations.
Structured by J.P. Morgan, the single-tranche Sustainability Bond offering is Pacific Life’s largest bond offering in more than a decade and is the largest ESG debt offering from a U.S. life insurer to date.
Terms of Bond:
Issuer: Pacific Life Global Funding II
Funding Agreement Provider: Pacific Life Insurance Company
Sustainability Bond Ratings: Moody’s: A1, Fitch: AA-, S&P: AA-
Trade date: 4/7/2021
Amount: 800 ($MM)
Use of Proceeds Lookback: 2 Years
Second Party Opinion Provider: Sustainalytics
Joint Book-Runners: BNP Paribas Securities Corp.
Citigroup Global Markets Inc.
J.P. Morgan Securities LLC
About Pacific Life
For more than 150 years, Pacific Life has helped millions of individuals and families with their financial needs through a wide range of life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. Whether your goal is to protect loved ones or grow your assets for retirement, Pacific Life offers innovative products and services that provide value and financial security for current and future generations. Pacific Life counts more than half of the 100 largest U.S. companies as its clients and has been named one of the 2021 World’s Most Ethical Companies® by the Ethisphere Institute. For additional company information, including current financial strength ratings, visit www.PacificLife.com.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Client count as of June 2020 is compiled by Pacific Life using the 2020 FORTUNE 500® list.