Principal® Releases First Sustainable Finance Report Announcing $600M Sustainable Bond Allocations

Published 33 minutes ago

Proposed by Principal Financial Group, Inc.

DES MOINES, Iowa, Oct. 26, 2022 /CSRwire/ – Principal Financial Group® released its first-ever mainline Sustainable Finance Report to highlight proceeds allocated to eligible green and social assets from the company’s $600 million sustainability bond issuance in August 2021. The report details the allocation and product key performance indicators, which went to initiatives such as green buildings, renewable energy, energy efficiency and affordable housing.

The bond is an example of the company’s commitment to advancing environmental, social and governance (ESG) practices in its organization and operations, with a focus on the customer at the heart of how ESG factors are integrated into investment portfolios.

“Principal has embraced sustainability as a core strategy to help strengthen our business, advance our purpose, and build a more inclusive and resilient global community,” said Deanna Strable, Executive Vice President and Chief Financial Officer of Principal.®. “The issuance of a sustainability bond and our first annual sustainability finance report is another example of our commitment to making positive change in the areas where we believe we can have the greatest impact.”

To govern the process for this sustainability bond and future green, social and sustainability bond issuances, Principal has created the Principal Sustainable Financing Framework (the “Framework”). Depending on the framework, eligible assets can include existing or future investments that meet defined criteria to help advance the United Nations Sustainable Development Goals (UN SDGs). A company is only eligible if 90% or more of its revenue comes from activities and criteria that comply with the UN SDGs. Principal obtained an independent second-party opinion on its sustainable finance framework. For more details, see the opinion of the second part of Sustainalytics.

The sustainability bond was a note backed by a five-year, $600 million funding agreement issued through Principal Life Global Funding II. BNP Paribas Securities Corp. was the sole sustainable structuring agent and co-bookrunner with BofA Securities, Inc. and HSBC Securities (USA) Inc. for the sustainable bond, which attracted interest from over 60 investors.

In line with the company’s commitment to transparency, Principal has re-engaged Sustainalytics, a qualified and independent external reviewer, to verify and provide a third-party with limited assurance regarding the handling of Principal’s sustainable finance proceeds and the compatibility of selected eligible assets. with the Core Sustainable Finance Framework.

More information on how Principal works to advance ESG programs can be found at principal.com/sustainability.

Learn more about our corporate responsibility commitments.

About Principal Financial Group®
Main financial group® (Nasdaq: PFG) is a global financial company with 18,500 employees1 passionate about improving the wealth and well-being of people and businesses. In business for over 140 years, we help over 54 million customers1 plan, protect, invest and retire, while working to support the communities in which we operate and build a diverse and inclusive workforce. Director® is proud to be recognized as one of America’s 100 Most Sustainable Companies2a member of the Bloomberg Gender Equality Index, and a top 10 workplace in financial management3.” Learn more about Principal and our commitment to building a better future at principal.com.

1 As of June 30, 2022
2 Barrons, 2022
3 Pensions and investments, 2021

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Offerings of sustainability bonds are generally limited to qualified institutional buyers (QIBs) through the relevant underwriter. May not be a suitable investment for QIBs seeking exposure to green assets.

Principal Global Investors leads global asset management and is a member of the Principal Financial Group®.​

Principal, Principal and Symbol Design, and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of Principal Financial Group®.

©2022 Principal Financial Services, Inc. Insurance products issued by Principal National Life Insurance Co (except New York) and Principal Life Insurance Company®. Plan administration services provided by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities and Advisory Services offered by Principal Securities, Inc., Member SIPC and/or Independent Broker/Dealers. Listed companies are members of Principal Financial Group®, Des Moines, IA 50392.​
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Principal Financial Group, Inc. logo

Principal Financial Group, Inc.

Principal Financial Group, Inc.

Main financial group® (Nasdaq: PFG) is a global financial company with 18,500 employees1 passionate about improving the wealth and well-being of people and businesses. In business for more than 140 years, we help more than 51 million clients1 plan, protect, invest and retire, while working to support the communities in which we operate and create a diverse workforce and inclusive. Director® is proud to be recognized as one of America’s 100 Most Sustainable Companies2, a member of the Bloomberg Gender Equality Index and one of the 10 Best Companies to Work For in Financial Management3. Learn more about Principal and our commitment to building a better future at principal.com.

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