Pfizer taps US investment-grade market with $1bn sustainability bond

Move will help fund Covid-19 vaccine expenses

Pfizer is tapping the US investment-grade market with a $1 billion (€850m) sustainability bond that will help fund Covid-19 vaccine expenses, according to a person familiar with the matter.

The note, due in 2031, is set to yield 0.53 percentage point above Treasuries after initial price discussions in the 0.75 percentage point area, said the person, who asked not to be identified as the details are private.

Proceeds from the sale are marked for research and development expenses and the manufacturing and distribution of Covid-19 vaccines.

The New York-based pharmaceutical company sees the vaccine bringing in $33.5 billion of revenue this year, which would make it one of the top-selling medicines ever.

Pfizer also sold a sustainability bond in March 2020 to support efforts to address the coronavirus pandemic.

Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley are leading the sale, the person said. – Bloomberg

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