A five-year, $600 million funding agreement-backed note (FABN) issued through Principal Life Global Funding is allocating funds toward affordable and clean energy, industry innovation and infrastructure, and sustainable cities and communities.
According to Principal Financial Group’s first bond financing report, approximately $456 million went toward green buildings, $72 million toward energy efficiency, $42 million toward renewable energy and $30 million toward affordable housing.
“Principal has embraced sustainability as a core strategy to help strengthen our business, advance our purpose, and build a more inclusive and resilient global community,” said Deanna Strable, executive vice president and chief financial officer for Principal. “The issuance of a sustainability bond and our first annual Sustainable Financing Report is another example of our commitment to positive change in the areas where we believe we can have the greatest impact.”
The sustainability bond’s maturity date is Aug. 16, 2026. It drew initial interest from more than 60 investors.
Eligible assets for the bond may include existing or future investments that meet defined criteria to help advance the United Nations Sustainable Development Goals (U.N. SDGs). A business is only eligible if 90% or more of its revenue is derived from activities and criteria that align with U.N. SDGs.
The bond was announced last August, with the first released report coming last September.
In April, Principal announced the launch of the Global Financial Inclusion Index, in collaboration with the Centre for Economics and Business Research.
Principal Financial Group is headquartered in Des Moines and earned more than $14 billion in revenue in 2021.