Biopharmaceutical company Amgen Inc. (NASDAQ: AMGN) recently revealed the issuance of its inaugural $750 million green bond to advance its ESG goals.
The green bond is part of a $4 billion underwritten public offering of senior notes that was issued on February 22, 2022.
The $750 million green bond has a 3.000% semi-annual coupon and will mature in 2029.
Details of the Issue
The green bond issue is in line with the company’s previously announced plans to achieve carbon neutrality in its operations by 2027, slash water usage by 40%, and reduce waste disposal by 75%.
Amgen intends to use the net proceeds from the issue for new or existing eligible projects, including green buildings, eco-efficient operations and processes, eco-efficient products, renewable energy, and clean transportation.
Management Commentary
The Senior Vice-President of Corporate Affairs at Amgen, Judy Brown, said, “As a science-based company, we understand the profound impact that climate change is having on human health around the world. This green bond will fund specific projects across our company that are intended to mitigate our impact on the environment.”
Stock Rating
Recently, BMO Capital analyst Evan Seigerman reiterated a Hold rating on the stock with a price target of $240, which implies upside potential of 8.4% from current levels.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 6 Buys, 11 Holds and 1 Sell. The average Amgen price target of $243.50 implies that the stock has upside potential of 10% from current levels. Shares have declined 4.8% over the past year.
Hedge Funds’ Confidence
TipRanks’ Hedge Fund Trading Activity tool shows that hedge fund confidence in Amgen is currently Negative. Moreover, the cumulative change in holdings across all 16 hedge funds that were active in the last quarter was a decrease of 227,500 shares.
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