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Mondelēz International Prices First Green Bond Offering
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Mondelēz International Prices First Green Bond Offering

Confectionery giant Mondelēz International, Inc. (MDLZ) recently announced the pricing of its inaugural green bonds at €2.0 billion. The green bonds will be issued through the company’s wholly-owned subsidiary, Mondelez International Holdings Netherlands B.V.

Following the news, shares of the company declined marginally to close at $61.72 in extended trade on Friday.

The €2 billion bonds issued consist of €650 million of 0.250% notes due September 2029; €650 million of 0.625% notes due September 2032 and €700 million of 1.250% notes due September 2041. The company intends to use the proceeds from the bonds issued to sustainably source ingredients, reducing waste in packaging and tackling climate change.

The CEO of Mondelēz International, Dirk Van de Put, said, “I am proud to announce that we successfully placed our first green bond offering – the largest issuance to date within our industry. We remain laser focused on building a more sustainable snacking company and this green bond issuance is an important testament to our commitment to advancing our ESG agenda.” (See Mondelēz International stock chart on TipRanks)

Last month, Goldman Sachs analyst Jason English reiterated a Buy rating on the stock with a price target of $71. The analyst’s price target implies 15.4% upside potential from current levels.

According to English, cost pressure and low volumes remain headwinds for the company. However, the company’s strong second-quarter results give it a strong footing.

Consensus among analysts is a Strong Buy based on 7 Buys and 1 Hold. The average Mondelēz International price target of $70.63 implies upside potential of 14.4% from current levels. Shares have gained 9.5% over the past year.

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