Teva becomes first pharma company that has offered bonds linked to sustainability targets

Categories: Capital Markets

Teva Pharmaceuticals recently issued USD 5 Billion worth of SLB, or Sustainability-Linked Bonds, the first time a generic pharma company has offered bonds linked to sustainability targets, and also the largest issuance of SLB bonds to date.

As part of the Environmental and Corporate Responsibility (ESG) trend, the interest paid on the bonds will be linked to Teva’s targets in the ESG area – a 25% reduction in carbon dioxide emissions and a 150% increase in drug accessibility to third-world countries.

Most of the proceeds from the issuance of the bonds will be used by Teva to finance the purchase of existing bonds amounting to up to USD 4 Billion, announced on October 27.

Tulchinsky, Marciano, Cohen, Levitski & Co. Partner Uri Barak and associate Alon Nahear advised on the transactions.

Herzog acted as Israeli counsel to J.P. Morgan, BofA Securities, HSBC Bank, and BNP Paribas as joint book-runners and managers of a USD 5 Billion public offering of sustainability-linked notes by Teva Pharmaceuticals Industries.
This is a unique transaction in the Israeli landscape, both because of its size, and because the notes are linked to sustainability targets such as reductions of emissions.
The Herzog team included Alan Sacks, Ron Ben-Menachem, Yuval Navot, Eldad Chamam, Dr. Ehab Farah, Eitan Ella, Shiri Cohen and Raz Meltzer.
Baker Mckenzie represented the banks as international counsel.
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