Starbucks to Raise $500 Million in Sustainability Bond

Starbucks Corp. said it plans to raise $500 million to pay for so-called sustainable projects, including support programs for farmers in coffee-growing regions.

The Seattle-based coffee chain said it would sell 10-year bonds to go toward those projects, underscoring the greater focus on environmental and social issues in corporate business practices.

"Sustainability is not just an add-on, but an integral part of Starbucks, including our strategy and finances," Chief Financial Officer Scott Maw said in a news release. Starbucks said it would update every year how the money is being used.

The company already operates an agronomy center in a Costa Rica farm along with a network of eight farmer support centers around the world, and it had committed to invest $50 million in short- and long-term loans to farmers.

Research firm Sustainalytics, which focuses on sustainability ratings, gave the second opinion for 'sustainability bond,' Starbucks said in a news release.

The company's stock closed down 0.5% Monday at $55.53, but it has risen 9.3% over the past 12 months.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

May 16, 2016 19:25 ET (23:25 GMT)

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