Arkema issues €500 million green bond to fund sustainable projects, reinforcing commitment to specialty materials and eco-innovation.

Pennsylvania, United States:  Arkema has announced the successful placement of a €500 million green bond with an eight-year maturity and an annual coupon of 3.50 per cent. This latest issuance builds on the company’s first green bond launched five years ago, which financed its fully bio-based Rilsan polyamide 11 plant in Singapore. The move marks another milestone in aligning Arkema’s financing strategy with its long-term sustainability roadmap.

The net proceeds from the bond will be directed towards the financing or refinancing of strategic programs that promote sustainable development and support major ongoing investments, most of which comply with EU taxonomy criteria. By allocating funds to initiatives tackling climate challenges and enabling eco-efficient innovations, Arkema is further strengthening its role in the global sustainability transition.

The issuance falls under Arkema’s Green Financing Framework, covering projects related to renewable energy, energy efficiency, eco-efficient products and circular economy processes, sustainable construction, water management and treatment, and climate adaptation. The framework has been reviewed by Moody’s and received an SQS2 “Very Good” Sustainability Quality Score, underscoring the company’s strong sustainability credentials and ambitions.

“With this new green bond, Arkema reaffirms its commitment to accelerating its transformation as a leader in specialty materials while delivering sustainable and innovative solutions for a better future,” the company stated.

According to TechSci Research, Arkema’s issuance of a €500 million green bond is highly beneficial for the chemical industry as it underscores the growing role of sustainable financing in driving innovation and eco-efficient solutions. By channeling funds into projects aligned with EU taxonomy criteria, such as renewable energy, circular economy practices, and sustainable materials, this initiative promotes industry-wide adoption of environmentally responsible operations. The move highlights how leading chemical companies are leveraging green bonds to finance strategic projects that address climate challenges while maintaining competitiveness. Moreover, it sets a strong precedent for other industry players to integrate sustainability into their financing strategies, enhancing investor confidence and attracting capital towards cleaner technologies. This not only accelerates the transition to low-carbon solutions but also supports the chemical sector’s evolution into a key enabler of sustainable development across multiple industries, from construction to packaging and advanced materials.