Teva successfully completed the issuance of the largest SLB bond to date, amounting to $ 5 billion

Teva, the company that brought the news of generics to the world, successfully completed yesterday the issuance of the largest SLB bond to date, amounting to $ 5 billion.
Bellemberg reports that the popularity of SLB (Sustainability-Linked Bond) has grown dramatically this year and has so far reached a total of about $ 125 billion compared to $ 16 billion raised last year.
Unlike green, environmental and social bonds in the past, in SLB the money raised is not intended to advance the social cause and can actually be used by the company for current financing needs. However, the coupon for investors varies depending on meeting the social goals. Attractive recruitment for a larger variety of companies from a wide range of industries.
Teva has already announced with the publication of its third quarter reports its intention to raise $ 4 billion through SLB, but the volume of demand has allowed it to increase its raising to $ 5 billion and thus become the largest SLB issue to date, beyond being the first generic company to raise in this mechanism It is to be expected that the victory in the California opioid trial has given a boost to recruitment primarily in terms of the scope it has raised.
According to the company announcement, the money is expected to allow for refinancing and improved debt of previously issued debt. The environmental component in SLB, i.e. a commitment to reduce greenhouse gas emissions, is fairly standard. Teva is committed to reducing greenhouse gas emissions (scope 1 + 2) by 25% by 2025.
It is clear how everyone benefits from this component - the environment, the company that becomes more efficient, the investors and investors who benefit both from the improvement in profitability as a result of the efficiency, and from the improvement in the environment. The component of expanding drug accessibility is more complex. On the face of it there is an expansion of the target markets here but it is clear to all of us that selling drugs in emerging markets is a blue ocean, an unrivaled area that is very complex to do business there. Teva's commitment is to increase access to its medicines by 150% in low-income countries.
Anyone who examines Teva's corporate responsibility reports will find that the challenge is enormous. Teva has been operating in the arena as a social mission for several years. 15,000 cases per year in the United States where the mortality rate is about 20%.
As long as Teva succeeds in streamlining the process, it will push the boundaries of philanthropy and enable impact activity, one that has financial value alongside social value, making it not only sustainable but also extensible.
In the 2021 Corporate Responsibility Report Teva announced that it will launch 8 global programs by 2025 that will allow it to make the drugs it manufactures accessible to more people in countries where there is currently no access.
The programs consist of three tiers: training physicians, nurses, and treatment teams to use medications and how they are given; Access to essential medicines; And improving health facilities designed for the care of boys and girls.
Teva is the first generic company to announce such an ambitious program but Novartis has also come out with a program that focuses on drug accessibility mainly in Africa. In a September 2021 investor presentation, Novartis announced its commitment by 2025 to increase accessibility to its drugs in countries and small communities capable of half a million patients to 1.6 million people receiving Novartis' innovative drugs, and from 15 million to 22 million people receiving the company's flagship drugs . The tying of the social objectives to the IPO ensures that, like the financial statements, the corporate responsibility report will be transparent, audited and supervised beyond the standard level, since the IPO has financial implications.