Starbucks Corporation has closed an underwritten public offering of senior notes, consisting of  the first global yen-denominated corporate sustainability bond issued in the Japanese market.

The firm will use net proceeds from the offering of JPY85bn ($701m) in 0.372% senior notes due 2024 to support its sustainability programmes, which include coffee supply chain management through feasible projects.  

One such programme is the purchase of coffee from suppliers verified by a third-party as complying with Starbucks' ethical sourcing verification programme of coffee and farmer equity (C.A.F.E.) practices. Others include the development and operation of farmer support centres in coffee growing regions.

Starbucks' chief financial officer Scott Maw said: “Coffee is our core and we are committed to supporting the sustainability of the specialty coffee industry for future generations through the issuance of our second sustainability bond.

"We are committed to supporting the sustainability of the specialty coffee industry for future generations through the issuance of our second sustainability bond."

“We are pleased to be able to close our first foreign-denominated bond issuance in Japan, a significant and strategically important global market for Starbucks, which is renowned for its socially conscious consumers and investors who have fully embraced the Starbucks brand.

"Japan was our first international market outside of North America and has continued to grow and scale over the past 20 years to now more than 1,200 stores across all 47 prefectures.”

Every year, Starbucks invests in its comprehensive approach to ethically source its coffee. This includes providing support to coffee farming communities, helping lessen the impact of climate change, and reinforcing long-term crop stability and farm sustainability. This work has led to the planting of 22 million rust-resistant coffee trees in Latin America to date.

Starbucks operates a network of farmer support centers in Rwanda, Tanzania, Colombia, China, Costa Rica, Indonesia, Guatemala, Ethiopia, and Mexico. The company has a commitment to provide $50m in farmer funding in the form of new and financed loans.