Lilly Prices First Sustainability Bond to Advance Global ESG Strategy

BY PR Newswire | CORPORATE | 09/09/21 02:00 PM EDT

INDIANAPOLIS, Sept. 9, 2021 /PRNewswire/ --?Eli Lilly and Company today announced the pricing of its first sustainability bond to advance its global environmental, social and governance (ESG) strategy to increase access to medicines, improve lives and communities, empower a diverse workforce, minimize environmental impact and operate ethically and responsibly. The company is issuing ?600 million in aggregate principal amount of 0.50% notes with 12-year maturity, subject to customary closing conditions.

"Lilly is taking another step forward in advancing our purpose of making life better for people around the world," said Anat Ashkenazi, Lilly's chief financial officer. "This sustainability bond is Lilly's latest commitment to our ESG strategy, which is core to our mission."

In line with its newly introduced Sustainability Bond Framework, Lilly intends to allocate an amount equivalent to the net proceeds from the sustainability bond to eligible projects designed to advance one or more of the following ESG objectives:??

Increase Access to Medicines

  • Provide free or subsidized health care and treatment options to people with limited resources, including those who live in low and middle-income countries, or those affected by socioeconomic crises such as the COVID-19 pandemic.

Improve Lives and Communities/Empower a Diverse Workforce

  • Recruit, hire and train a diverse workforce and increase procurement of products and services from diverse suppliers, including companies owned by women, ethnic and racial minorities and members of the LGBTQ community.

Minimize Environmental Impact

  • Reduce air emissions by improving energy efficiency ? through the design, construction, operation, or maintenance of energy-efficient equipment, facilities and infrastructure ? as well as increasing renewable energy capacity through the acquisition or development of new onsite or offsite renewable energy technology.
  • Reduce waste and water emissions, improve water quality and efficiency and protect coastal, marine and watershed environments.

Sustainalytics, a leading global provider of environmental, social and corporate governance research and ratings, reviewed Lilly's Sustainability Bond Framework?and provided a favorable second party opinion. The Sustainability Bond Framework is aligned with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2021.

Additional information on Lilly's comprehensive ESG strategy, goals and progress can be found at esg.lilly.com.

About Eli Lilly and Company (LLY)

Lilly is a global health care leader that unites caring with discovery to create medicines that make life better for people around the world. We were founded more than a century ago by a man committed to creating high-quality medicines that meet real needs, and today we remain true to that mission in all our work. Across the globe, Lilly employees work to discover and bring life-changing medicines to those who need them, improve the understanding and management of disease, and give back to communities through philanthropy and volunteerism. To learn more about Lilly, please visit us at lilly.com and lilly.com/news.?I-LLY

Lilly Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) about the offering of sustainability bonds, including our sustainability objectives, goals and commitments, and reflects Lilly's current beliefs and expectations. However, as with any such undertaking, there are substantial risks and uncertainties that could impact Lilly's ability to complete the offering of sustainability bonds on favorable terms, if at all, including general market conditions that could affect the offering of sustainability bonds and other risks and uncertainties, many of which are beyond Lilly's control, that could cause its actual results to differ materially from those indicated in its forward-looking statements. For further discussion of these and other risks and uncertainties, see Lilly's latest Forms 10-K, 10-Q and any 8-Ks filed with the United States Securities and Exchange Commission. Except as required by law, Lilly undertakes no duty to update forward-looking statements to reflect events after the date of this release.??

Refer to:????

Carrie Munk; munk_carrie@lilly.com; 317-416-2393 (Media)


Kevin Hern; hern_kevin_r@lilly.com; 317-277-1838 (Investors)


Jim Greffet, greffet_james_f@lilly.com; 317-277-0032 (Lilly ESG)

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Eli Lilly and Company logo. (PRNewsFoto, Eli Lilly and Company)

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SOURCE Eli Lilly and Company (LLY)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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