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Wal-Mart Stores NYSE: WMT-N

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Walmart Announces Closing of Inaugural $2 Billion Green Bond Issuance

Business Wire - Thu Sep 23, 7:30AM CDT

Walmart Inc. (NYSE: WMT) today announced that it has closed its previously announced $2 billion inaugural green bond offering. Net proceeds will be allocated to fund current and prospective projects to advance Walmart's sustainability goals.

The green bond is Walmart's first offering under the company's Green Financing Framework, published August 2021, which details the company's alignment with the 2021 Green Bond Principles, administered by the International Capital Markets Association (ICMA).

"The closing of our first-ever green bond offering directs capital toward projects that will advance our environmental sustainability goals now and in the years to come. These goals include achieving 100% renewable energy by 2035 and zero emissions in our operations by 2040," said Kathleen McLaughlin, Executive Vice President and Chief Sustainability Officer, Walmart. "Becoming a regenerative company is a journey. This green bond signals that we continue to make headway. We remain steadfast in our commitment to addressing climate change, transitioning to a circular economy and restoring natural ecosystems, all while supporting the communities in which we operate."

Walmart intends to allocate an amount equal to the net proceeds of the $2 billion offering toward a portfolio of Eligible Green Investments within the following Eligible Green Categories:

Renewable energy projects, including supporting infrastructure such as micro grids and energy storage to reduce emissions and transition away from fossil fuel use.High performance buildings projects related to making Walmart's facilities more energy efficient.Sustainable transport projects related to Walmart's operations, supply chain or customers, such as electric, hydrogen and hybrid vehicles.Zero waste and circular economy projects focused on waste prevention, waste reduction, and waste recycling for Walmart's facilities, supply chain and in the communities where Walmart operates, including closed-loop material flows and resource-efficient packaging and distribution.Quality and efficient water stewardship projects and technologies, including water efficiency, water conservation and water quality projects such as upgrading water fixtures and irrigation systems, water monitoring and controls, and investment in water harvesting, treatment and recycling infrastructure.Habitat restoration and conservation centered on the preservation, restoration and management of natural landscapes including the protection of coastal, marine and watershed environments.

On an annual basis, Walmart will issue a public report with information on the allocation of bond proceeds to Eligible Green Investments until an amount equal to the net proceeds of the green bond has been allocated. In addition, Walmart will, on a best efforts basis, provide impact reporting to support its allocation reporting.

The green bond is part of $7 billion of new senior unsecured notes that the company successfully closed across 5-, 7-, 10-, 20- and 30-year tranches.

Leading the green bond as active bookrunners were four nationally recognized minority- and women-owned firms, including African-American and service-disabled veteran-owned AmeriVet Securities, Inc., women-owned C.L. King & Associates, Inc., Hispanic-owned Samuel A. Ramirez & Company, Inc. and African American- and women-owned Siebert Williams Shank & Co., LLC. BofA Securities, Inc., Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC also served as active bookrunners on the green bond. BofA Securities, Inc. was the Green Structuring Agent, while Citigroup Global Markets Inc. served as Diversity and Inclusion Coordinator.

"Walmart is committed to furthering our relationships with minority owned businesses, and we're pleased that our inaugural green offering included the work of four nationally recognized minority- and women-owned investment banking firms," said Brett Biggs, Executive Vice President and Chief Financial Officer, Walmart. "Their support is helping to drive both financial and sustainable benefits that we believe will drive positive societal and total shareholder returns."

Walmart's Sustainability Strategy

Walmart has a comprehensive ESG strategy and is committed to initiatives under the pillars of Opportunity, Sustainability, Community and Ethics & Integrity.

Climate change has been a top sustainability priority at Walmart since 2005 and the company has worked to reduce and avoid emissions throughout its operations and beyond for more than a decade.

In 2016, Walmart became the first retailer to announce a science-based emissions target designed to achieve emissions reduction in its operations and supply chains. In 2020, Walmart raised its aspiration to reduce operational (Scopes 1 and 2) emissions by realigning its science-based target to a 1.5-degree Celsius trajectory, the highest ambition approved by the Science-based Targets Initiative. Walmart's goal is to achieve zero emissions across its global operations by 2040, reducing absolute scopes 1 and 2 GHG emissions by 35% by 2025 and by 65% by 2030 from a 2015 base year. Walmart was the first U.S. retailer to make a zero emissions commitment that does not rely on carbon offsets.

In support of these goals, Walmart aims to be supplied by 100% renewable energy by 2035 across its global operations, electrify and zero out emissions from all its vehicles, including long-haul trucks, by 2040 and transition to low-impact refrigerants for its facilities by 2040.

In 2017, Walmart launched Project Gigaton(TM), an initiative with its suppliers to avoid one billion metric tons (a gigaton) of greenhouse gases in the global value chain by 2030 by focusing on areas including energy use, product design and use, waste and packaging.

About Walmart

Walmart Inc. (NYSE: WMT) helps people around the world save money and live better - anytime and anywhere - in retail stores, online, and through their mobile devices. Each week, approximately 220 million customers and members visit approximately 10,500 stores and clubs under 48 banners in 24 countries and eCommerce websites. With fiscal year 2021 revenue of $559 billion, Walmart employs 2.2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity.

Forward-Looking Statements

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor does it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The offerings to which this press release relates were made pursuant to an effective registration statement that Walmart Inc. ("we," the "Company" or "Walmart") filed with the Securities and Exchange Commission (the "SEC") and only by means of a prospectus supplement and accompanying base prospectus. Walmart has filed with the SEC a final prospectus supplement to the base prospectus for each of the offerings. You can obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov.

This press release contains statements or may include statements that may be deemed to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Act"), that are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws. With respect to our ESG reporting, our actual future results, including the achievement of our targets, goals or commitments, could differ materially from our projected results as the result of changes in circumstances, assumptions not being realized, or other risks, uncertainties and factors. Assumptions on which such forward-looking statements are based are also forward-looking statements. Such forward-looking statements are not statements of historical facts, but instead express our estimates or expectations for our consolidated, or one of our segment's or business', economic performance or results of operations for future periods or as of future dates or events or developments that may occur in the future or discuss our plans, objectives or goals, including ESG reporting that contains certain forward-looking statements based on Walmart management's current assumptions and expectations, including statements regarding our ESG targets, goals, commitments and programs and other business plans, initiatives and objectives. These statements are typically accompanied by the words "aim," "hope," "believe," "estimate," "plan," "aspire" or similar words. Our actual results may differ materially from those expressed in or implied by any of these forward-looking statements as a result of changes in circumstances, assumptions not being realized or other risks, uncertainties and factors including: the use of proceeds of the offering and the provision of certain related opinions and assurance reports; the impact of the COVID-19 pandemic on our business and the global economy; economic, capital markets and business conditions; trends and events around the world and in the markets in which we operate; currency exchange rate fluctuations, changes in market interest rates and market levels of wages; changes in the size of various markets, including eCommerce markets; unemployment levels; inflation or deflation, generally and in particular product categories; consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels and demand for certain merchandise; the effectiveness of the implementation and operation of our strategies, plans, programs and initiatives; unexpected changes in our objectives and plans; the impact of acquisitions, investments, divestitures, and other strategic decisions; our ability to successfully integrate acquired businesses; changes in the trading prices of certain equity investments we hold; initiatives of competitors, competitors' entry into and expansion in our markets, and competitive pressures; customer traffic and average transactions in our stores and clubs and on our eCommerce websites; the mix of merchandise we sell, the cost of goods we sell and the shrinkage we experience; our gross profit margins; the financial performance of Walmart and each of its segments, including the amounts of our cash flow during various periods; the amount of our net sales and operating expenses denominated in the U.S. dollar and various foreign currencies; commodity prices and the price of gasoline and diesel fuel; supply chain disruptions and disruptions in seasonal buying patterns; the availability of goods from suppliers and the cost of goods acquired from suppliers; our ability to respond to changing trends in consumer shopping habits; consumer acceptance of and response to our stores, clubs, eCommerce platforms, programs, merchandise offerings and delivery methods; cyber security events affecting us and related costs and impact to the business; developments in, outcomes of, and costs incurred in legal or regulatory proceedings to which we are a party or are subject, and the liabilities, obligations and expenses, if any, that we may incur in connection therewith; casualty and accident-related costs and insurance costs; the turnover in our workforce and labor costs, including healthcare and other benefit costs; our effective tax rate and the factors affecting our effective tax rate, including assessments of certain tax contingencies, valuation allowances, changes in law, administrative audit outcomes, impact of discrete items and the mix of earnings between the U.S. and Walmart's international operations; changes in existing tax, labor and other laws and regulations and changes in tax rates including the enactment of laws and the adoption and interpretation of administrative rules and regulations; the imposition of new taxes on imports, new tariffs and changes in existing tariff rates; the imposition of new trade restrictions and changes in existing trade restrictions; adoption or creation of new, and modification of existing, governmental policies, programs, initiatives and actions in the markets in which Walmart operates and elsewhere and actions with respect to such policies, programs and initiatives; changes in accounting estimates or judgments; the level of public assistance payments; natural disasters, changes in climate, geopolitical events, global health epidemics or pandemics and catastrophic events; and changes in generally accepted accounting principles in the United States.

Our most recent annual report on Form 10-K and subsequent quarterly report on Form 10-Q filed with the SEC discuss other risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this press release. In addition, with respect to our ESG targets, goals and commitments outlined in this press release or elsewhere, such risks, uncertainties and factors include the challenges, assumptions and dependencies identified in our ESG issue briefs under the heading Challenges and other assumptions, risks, uncertainties and factors identified in our reporting. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this press release. Walmart cannot assure you that the results reflected in or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecasted or expected consequences and effects for or on our operations or financial performance. The forward-looking statements made herein are as of the date of this press release. Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210923005276/en/

SOURCE: Walmart Inc.

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