Furthering its Commitment to Invest In Sustainability Projects
(Perrysburg, OH) – Owens-Illinois, Inc. (NYSE:OI) is the first company in the packaging industry to issue a Green Bond, furthering its commitment to sustainability throughout its global manufacturing operations and glass packaging.
To support the debt offering, O-I developed a Green Bond Framework, describing in detail the Company’s sustainability strategy and goals and the types of investments that O-I is pursuing from a sustainability perspective. The bond offering received overwhelming support; the offering was upsized from EUR 300m to 500m, and priced a historically low coupon rate for O-I at 2.875%.
“Glass is a highly attractive package for the new green economy given its clear sustainability attributes – it is pure, healthy and infinitely recyclable. Glass is good for you and good for the planet,” said Andres Lopez, Chief Executive Officer. “Sustainability is woven into everything we do and the Green Bond formalizes our intentions to positively impact our products, operations and financials. We believe this commitment will gain investors’ confidence in our company and our product.”
The Company will allocate an amount equal to the net proceeds of this offering to finance and/or refinance a variety of new and existing Eligible Green Projects made during the three years prior to the issuance of the Green Bond and the three years subsequent to the issuance of the Green Bond.
The “Eligible Green Projects” that O-I will invest in are further described in O-I’s Green Bond Framework and include:
- projects and investments aimed at replacing fossil fuel energy with renewable energy (wind and solar);
- investments in energy efficient solutions, such as LED lighting;
- use of new technologies aimed at reducing water consumption in the manufacturing process;
- projects, investments and research and development aimed at improving the production technologies and processes in manufacturing facilities and facilitating the use of alternative resources;
- projects aimed at using circular economy programs, including waste collection and/or glass recycling processing facilities; and
- projects aimed at decreasing the use of raw material, and using sustainable raw material to produce environmentally friendly products.
The Company’s Eligible Green Projects are designed to advance certain U.N. Sustainable Development Goals. O-I received a second party opinion from Sustainalytics, a leading independent ESG research and ratings firm. Sustainalytics noted in its opinion that the Company’s Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles.
Click here to view O-I’s Green Bond Framework.
Click here to view Sustainalytics Second Party Opinion.
At Owens-Illinois, Inc. (NYSE: OI), we love glass and we’re proud to make more of it than any other glass bottle or jar producer in the world. We love that it’s beautiful, pure and completely recyclable. With global headquarters in Perrysburg, Ohio, we are the preferred partner for many of the world’s leading food and beverage brands. Working hand and hand with our customers, we give our passion and expertise to make their bottles iconic and help build their brands around the world. With more than 26,500 people at 78 plants in 23 countries, O-I has a global impact, achieving revenues of $6.9 billion in 2018. For more information, visit o-i.com.
This press release contains “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 27A of the Securities Act of 1933. Forward-looking statements reflect the Company’s current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words “believe,” “expect,” “anticipate,” “will,” “could,” “would,” “should,” “may,” “plan,” “estimate,” “intend,” “predict,” “potential,” “continue,” and the negatives of these words and other similar expressions generally identify forward-looking statements.
It is possible the Company’s future financial performance may differ from expectations due to a variety of factors including, but not limited to the following: (1) foreign currency fluctuations relative to the U.S. dollar, (2) changes in capital availability or cost, including interest rate fluctuations and the ability of the Company to refinance debt at favorable terms, (3) the general political, economic and competitive conditions in markets and countries where the Company has operations, including uncertainties related to Brexit, economic and social conditions, disruptions in the supply chain, competitive pricing pressures, inflation or deflation, and changes in tax rates and laws, (4) the Company’s ability to generate sufficient future cash flows to ensure the Company’s goodwill is not impaired, (5) consumer preferences for alternative forms of packaging, (6) cost and availability of raw materials, labor, energy and transportation, (7) the Company’s ability to manage its cost structure, including its success in implementing restructuring or other plans aimed at improving the Company’s operating efficiency and working capital management, achieving cost savings, and remaining well-positioned to address the Company’s legacy liabilities, (8) consolidation among competitors and customers, (9) the Company’s ability to acquire or divest businesses, acquire and expand plants, integrate operations of acquired businesses and achieve expected benefits from such acquisitions, divestitures or expansions, (10) unanticipated expenditures with respect to data privacy, environmental, safety and health laws, (11) unanticipated operational disruptions, including higher capital spending, (12) the Company’s ability to further develop its sales, marketing and product development capabilities, (13) the failure of the Company’s joint venture partners to meet their obligations or commit additional capital to the joint venture, (14) the ability of the Company and the third parties on which it relies for information technology system support to prevent and detect security breaches related to cybersecurity and data privacy, (15) the Company’s ability to accurately
estimate its total asbestos-related liability or to control the timing and occurrence of events
related to outstanding asbestos-related claims, including but not limited to settlements of those
claims, (16) changes in U.S. trade policies, (17) the Company’s ability to achieve its strategic plan, and the other risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and any subsequently filed Quarterly Report on Form 10-Q or the Company’s other filings with the Securities and Exchange Commission.
It is not possible to foresee or identify all such factors. Any forward-looking statements in this news release are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate in the circumstances. Forward-looking statements are not a guarantee of future performance and actual results or developments may differ materially from expectations. The Company’s forward-looking statements speak only as of the date made. While the Company continually reviews trends and uncertainties affecting the Company’s results of operations and financial condition, the Company does not assume any obligation to update or supplement any particular forward-looking statements contained in this news release.
For more information, contact:
Leslie Orozco, Communications Leader, Americas
+1 (567) 336 2600
Stefan Weinmann, Communications Leader, Europe