Comcast Plans First-Ever Green Bond Sale to Fund Climate Goals

Caleb Mutua, Bloomberg News

(Bloomberg) -- Comcast Corp. is reaching out to gauge investor interest in what may be its first-ever bond sale earmarked for environmental projects as the nation’s largest broadband provider looks to slash carbon emissions across its global operations.

The Philadelphia-based cable and media giant has asked banks including Bank of America Corp. to arrange a series of calls with fixed-income investors focused on environmental, social and governance issues in connection with Comcast’s green financing framework, according to a person with knowledge of the matter.

The calls will be held on Monday, Feb. 6 from 11a.m. to 2:45 p.m. New York Time and a US dollar-denominated, benchmark-size green bond sale may follow subject to market conditions, said the person, who asked not to be identified as the details are private. BofA is coordinating logistics and serving as the green structuring agent.

Proceeds from any green financing will be allocated to eligible green investments that may include funding renewable energy projects, green buildings, clean transportation and waste prevention, reduction and recycling, according to Comcast’s green financing framework.

The company aims to be carbon neutral by 2035 in Scope 1 and 2 greenhouse gas emissions, which includes slashing direct emissions from its global operations and indirect emissions from purchased and imported electricity consumption. That will mean eliminating or offsetting approximately 1.8 million tons of carbon dioxide equivalent (per 2021 data), equivalent to removing 500,000 passenger cars from the road, according to the framework.

Comcast is expected to join its peers in tapping the global green bond market at a time when the price benefit for issuing such bonds has vanished and investors have become more critical of ESG. Verizon Communications Inc., one of the largest issuer of US corporate bonds among telecom companies said in July that US investors are getting demanding when it comes to green-bond sales as they become increasingly wary of greenwashing.

S&P Global Ratings, which provided the second-party opinion on Comcast’s framework, said it considers the overall use of proceeds commitments fully aligned with components of the green bond and green loan principles.

--With assistance from Andrew Kostic.