Kellogg Company Announces Pricing of its Inaugural Sustainability Bond

BATTLE CREEK, Mich., May 11, 2021 /PRNewswire/ -- Kellogg Company (NYSE: K) today announced it has successfully priced a EUR 300 million 8-year Sustainability Bond with an interest coupon of 0.50% per annum, a first for the global food company. This milestone is aligned with Kellogg's heritage and commitment to social responsibility. 

"Kellogg has always been a purpose-driven organization – it's in our DNA," said Steve Cahillane, Kellogg's Chairman and Chief Executive Officer. "Our founder, W.K. Kellogg, was an early conservationist, a leading philanthropist and an original wellbeing visionary. With this legacy, we've inherited his commitment."

This bond transaction is in line with Kellogg's newly introduced Sustainability Bond Framework, which facilitates the company's use of sustainable capital markets to finance or refinance eligible projects that align with its commitments.  Kellogg's Sustainability Bond Framework has been reviewed by Sustainalytics, a second-party opinion provider and is aligned with the Green Bond Principles and the Social Bond Principles.

The net proceeds from the Sustainability Bond will support significant progress already made against our Better Days commitment to address the interconnected issues of wellbeing, hunger relief and climate resiliency to create Better Days for 3 billion people and the planet by 2030. An amount equal to the net proceeds will be used to finance or refinance projects within one or more of these categories: food security and sustainable food systems, renewable energy, energy efficiency, circular economy, environmentally sustainable management of living natural resources and land use, green buildings, and sustainable water and wastewater management.

"Sustainability is an enabler to balanced growth," said Cahillane. "It supports our bottom line through cost savings initiatives and risk mitigation, while supporting our commercial strategies to deliver topline growth."

The joint book-running managers for the offering are Coöperatieve Rabobank U.A., ING Bank N.V. and  Morgan Stanley & Co. International plc.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Sustainability Bonds or any other securities, nor shall there be any sale of the Sustainability Bond in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering was made only by means of a prospectus supplement and an accompanying prospectus filed as part of an effective shelf registration statement filed with the U.S. Securities and Exchange Commission on Form S-3.

Copies of the prospectus supplement and the accompanying prospectus relating to the offering may be obtained by calling Coöperatieve Rabobank U.A. at + 31307121591 or by email: [email protected]; ING Bank N.V. at Tel: +31205013104, or by e-mail: [email protected]; or Morgan Stanley & Co. International plc toll free at 1-866-718-1649. 

This press release is directed only (a) in the European Economic Area to qualified investors (within the meaning of Regulation (EU) 2017/1129 (as amended, the "Prospectus Regulation") and (b) in the United Kingdom, to qualified investors (within the meaning of the Prospectus Regulation as it forms part of the domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (as amended)) who are also persons (i) who have professional experience in matters relating to investments falling within Article 19(5) of the United Kingdom Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"), (ii) who are high net worth entities, and other persons falling within Article 49 of the Order and (iii) to whom it may otherwise be lawfully communicated. This press release must not be acted on or relied on by persons in the European Economic Area or the United Kingdom falling outside of the categories described in this paragraph.

About Kellogg Company

At Kellogg Company (NYSE: K), our vision is a good and just world where people are not just fed but fulfilled. We are creating better days and a place at the table for everyone through our trusted food brands. Our beloved brands include Pringles®, Cheez-It®, Special K®, Kellogg's Frosted Flakes®, Pop-Tarts®, Kellogg's Corn Flakes®, Rice Krispies®, Eggo®, Mini-Wheats®, Kashi®, RXBAR®, MorningStar Farms® and more. Net sales in 2020 were approximately $13.8 billion, comprised principally of snacks and convenience foods like cereal, frozen foods, and noodles. As part of our Kellogg's® Better Days purpose platform, we're helping to end hunger and are committed to creating Better Days for 3 billion people by the end of 2030.

Forward-Looking statements

This press release contains certain forward-looking statements that are not historical facts or current facts, including those related to use of an amount equal to bond proceeds for certain eligible project categories and future actions to drive environmental and social impacts. These forward-looking statements convey Kellogg's current expectations or forecasts of future events. Forward-looking statements are generally identified through the inclusion of words such as "aim," "anticipate," "believe," "drive," "estimate," "expect," "focus," "goal," "intend," "may," "plan," "project," "strategy," "target" and "will" or similar statements or variations of such terms and other similar expressions. Forward-looking statements regarding Kellogg involve known and unknown risks, uncertainties and other factors that may cause Kellogg's actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements in this press release. Certain of these risks and uncertainties are described in the "Risk Factors" section of Kellogg's most recent annual report on Form 10-K. You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this document. Kellogg does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect the impact of events or circumstances that arise after the date the forward-looking statements were made.

SOURCE Kellogg Company

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