WILMINGTON, Mass.--(BUSINESS WIRE)--Oct. 5, 2021--
Analog Devices Inc. (Nasdaq: ADI) (“ADI” or the “Company”), a leading global high-performance semiconductor company, has furthered its leadership in sustainable financing following the successful placement of its inaugural sustainability-linked bond offering of $750 million in 7-year notes. This bond offering, a first in the U.S. technology sector, supports ADI’s commitment to environmental sustainability by linking financing to the achievement of its ambitious ESG targets.
Earlier this year, ADI continued to advance its climate strategy with new commitments to reduce the Company’s carbon footprint. ADI developed Science-Based Target reduction plans and set goals to become carbon neutral by 2030 and achieve net zero emissions by 2050 or sooner. In support of this, ADI also joined the U.N. Global Compact and their campaign, Business Ambition for 1.5°C, a call to action to reach a net zero emissions target. ADI is committed to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 27% by 2025 and 50% by 2030 from a 2019 base year – consistent with reductions believed to be required to limit global warming to 1.5°C above pre-industrial levels. Importantly, ADI’s newly issued sustainability-linked bond ties the interest rate on the bond to the achievement of the first of these two goals.
“Leveraging sustainable financing is imperative to tackling society’s greatest threats, particularly climate change, and ADI is proud to be a pioneer for the U.S. technology sector in building this emerging market,” said Prashanth Mahendra-Rajah, Chief Financial Officer of Analog Devices. “Our inaugural sustainability-linked bond further reinforces our commitment to environment sustainability, especially the reduction of greenhouse gas emissions, which will help enable the transition towards a low-carbon economy.”
ADI is the first U.S. technology company to deploy three sustainable finance instruments with its sustainability-linked bond offering. In April 2020, ADI completed its inaugural green bond issuance of $400 million, marking its leadership as the first semiconductor company and one of the first U.S. technology companies to issue a green bond in the U.S. debt capital markets. In June 2021, ADI refinanced its revolving credit facility with a new a $2.5 billion sustainability-linked revolving credit facility, becoming one of the first semiconductor companies to use this instrument.
To provide ADI with the flexibility to utilize a full slate of sustainable finance instruments going forward, the Company also established a Sustainability-Linked Financing Framework in September 2021. This comprehensive framework received a second-party opinion from DNV. ADI believes that sustainable financing will not only support the Company’s broad sustainability strategy and vision but will also hold it accountable for meeting established goals.
More details on ADI’s ESG commitments and initiatives can be found in ADI’s 2020 Corporate Responsibility Report published earlier this year.
About Analog Devices, Inc.
Analog Devices, Inc. (NASDAQ: ADI) operates at the center of the modern digital economy, converting real-world phenomena into actionable insight with its comprehensive suite of analog and mixed signal, power management, radio frequency (RF), and digital and sensor technologies. ADI serves 125,000 customers worldwide with more than 75,000 products in the industrial, communications, automotive, and consumer markets. ADI is headquartered in Wilmington, MA. Visit http://www.analog.com.
This press release contains “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements address a variety of subjects, including, for example, statements about the Company’s sustainability goals and targets. Statements that are not historical facts, including statements about the Company’s beliefs, plans and expectations, are forward-looking statements. Such statements are based on the Company’s current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking statements often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “will,” “estimate,” “would,” “target” and similar expressions, as well as variations or negatives of these words. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: the risks and uncertainties related to market conditions and the risks and uncertainties described in a registration statement on Form S-3 (File No. 333-259782) and a related prospectus and prospectus supplement filed with the Securities and Exchange Commission on September 30, 2021. For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to the Company’s periodic reports and other filings with the Securities and Exchange Commission, including the risk factors contained in the Company’s most recent Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Forward-looking statements represent management’s current expectations and are inherently uncertain and are made only as of the date hereof. Except as required by law, the Company does not undertake or assume any obligation to update any forward-looking statements, whether as a result of new information or to reflect subsequent events or circumstances or otherwise.
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Source: Analog Devices Inc.