Comcast Corp. is reaching out to gauge investor interest in what may be its first-ever bond sale earmarked for environmental projects. The nation's largest broadband provider is looking to slash carbon emissions across its global operations.
The Philadelphia-based cable and media giant has asked banks, including Bank of America, to arrange a series of calls with fixed-income investors focused on environmental, social and governance, or ESG, issues in connection with Comcast's green-financing framework, according to a person with knowledge of the matter.
The calls were held Monday, and a U.S. dollar-denominated, benchmark-size green-bond sale may follow subject to market conditions, said the person, who asked not to be identified as the details are private. Bank of America is coordinating logistics and serving as the green-structuring agent.
Proceeds from any green financing will be allocated to eligible green investments that may include funding renewable energy projects, green buildings, clean transportation and waste prevention, reduction and recycling, according to Comcast's green-financing framework.
Comcast is expected to join its peers in tapping the global green-bond market at a time when the price benefit for issuing such bonds has vanished and investors have become more critical of ESG.
Verizon Communications Inc., one of the largest issuer of U.S. corporate bonds among telecom companies, said in July that investors in the United States are getting demanding when it comes to green-bond sales as they become increasingly wary of greenwashing.
Information for this article was contributed by Andrew Kostic of Bloomberg News (WPNS).