Summary
Aflac Incorporated announced on March 8, 2021, the successful issuance of $400 million in 1.125% Senior Sustainability Notes due 2026. This offering, conducted under a public registration statement, highlights Aflac's commitment to environmental and social initiatives, as the net proceeds are earmarked for eligible sustainability-focused investments and projects. The notes bear a relatively low interest rate of 1.125% and mature in 2026, with interest payments semi-annually. The company retains the option to redeem the notes prior to maturity under specific conditions, with redemption prices varying based on proximity to the maturity date. As general unsecured senior obligations, these notes rank equally with other existing and future unsecured senior indebtedness of Aflac.
Key Highlights
- 1Aflac Inc. issued $400 million in 1.125% Senior Sustainability Notes due 2026.
- 2Proceeds are designated for investments in assets, businesses, or projects with environmental or social benefits, aligning with the Aflac Incorporated Sustainability Bond Framework.
- 3The notes carry a fixed interest rate of 1.125% per annum, payable semi-annually.
- 4Interest payments commence on September 15, 2021, and the notes mature on March 15, 2026.
- 5Aflac has the option to redeem the notes early, with specific redemption prices outlined.
- 6The notes are general unsecured obligations, ranking pari passu with other senior unsecured debt.
- 7The offering was conducted through a public offering under a registration statement and underwritten by a syndicate led by Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, and others.