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Dow (DOW) Raises $1.25 Billion for Net-Zero Ethylene Complex
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Dow Inc.’s (DOW - Free Report) wholly-owned subsidiary, The Dow Chemical Company, has announced the successful closing of its green bond offering. The offering includes a $600 million aggregate principal amount of 5.15% notes due in 2034 and a $650 million aggregate principal amount of 5.6% notes due in 2054.
These notes represent the company's first-ever green financing instrument, which aligns with Dow's Green Finance Framework published on Jan 25, 2024. The Framework aims to support Dow's sustainability strategy, focusing on climate protection and a circular economy. Proceeds from this offering will be allocated toward projects meeting eligibility criteria outlined in the Framework, including investments related to the Fort Saskatchewan, Alberta Path2Zero project. More details regarding eligibility criteria and the use of proceeds can be found in the Framework.
Dow underscored the importance of the green bond offering as a cornerstone opportunity for investors to engage in its strategy of decarbonization and advancing circularity, all while securing earnings growth in the long term. The company highlighted that the funds raised from this offering would predominantly fuel the development of the world's premier net-zero Scope 1 and 2 emissions ethylene and derivatives complex in Alberta. Notably, this initiative received a definitive green light from Dow's Board in November 2023, signifying a significant milestone in the company's sustainability journey.
Dow's commitment to sustainability includes its goal to achieve carbon neutrality for Scopes 1+2+3 plus product benefits by 2050, announced in 2020. As part of this commitment, the company aims to reduce its Scope 1 and 2 net annual carbon emissions by 5 million metric tons by 2030 compared with its 2020 baseline, thus representing a 30% emissions reduction compared with 2005 levels.
Furthermore, in 2022, Dow unveiled its Transform the Waste strategy, which aims to create circular ecosystems by converting plastic waste and alternative feedstock into commercialized circular and renewable solutions. The company aims to commercialize 3 million metric tons per year of such solutions by 2030.
Dow’s shares have lost 10.5% in the past year compared with the industry's 21.3% decline in the same period.
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised 12.5% upward in the past 60 days. The stock is up around 52.4% in a year.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $3.97 per share, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 25.9% in the past year.
The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied 54.6% in the past year.
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Dow (DOW) Raises $1.25 Billion for Net-Zero Ethylene Complex
Dow Inc.’s (DOW - Free Report) wholly-owned subsidiary, The Dow Chemical Company, has announced the successful closing of its green bond offering. The offering includes a $600 million aggregate principal amount of 5.15% notes due in 2034 and a $650 million aggregate principal amount of 5.6% notes due in 2054.
These notes represent the company's first-ever green financing instrument, which aligns with Dow's Green Finance Framework published on Jan 25, 2024. The Framework aims to support Dow's sustainability strategy, focusing on climate protection and a circular economy. Proceeds from this offering will be allocated toward projects meeting eligibility criteria outlined in the Framework, including investments related to the Fort Saskatchewan, Alberta Path2Zero project. More details regarding eligibility criteria and the use of proceeds can be found in the Framework.
Dow underscored the importance of the green bond offering as a cornerstone opportunity for investors to engage in its strategy of decarbonization and advancing circularity, all while securing earnings growth in the long term. The company highlighted that the funds raised from this offering would predominantly fuel the development of the world's premier net-zero Scope 1 and 2 emissions ethylene and derivatives complex in Alberta. Notably, this initiative received a definitive green light from Dow's Board in November 2023, signifying a significant milestone in the company's sustainability journey.
Dow Inc. Price and Consensus
Dow Inc. price-consensus-chart | Dow Inc. Quote
Dow's commitment to sustainability includes its goal to achieve carbon neutrality for Scopes 1+2+3 plus product benefits by 2050, announced in 2020. As part of this commitment, the company aims to reduce its Scope 1 and 2 net annual carbon emissions by 5 million metric tons by 2030 compared with its 2020 baseline, thus representing a 30% emissions reduction compared with 2005 levels.
Furthermore, in 2022, Dow unveiled its Transform the Waste strategy, which aims to create circular ecosystems by converting plastic waste and alternative feedstock into commercialized circular and renewable solutions. The company aims to commercialize 3 million metric tons per year of such solutions by 2030.
Dow’s shares have lost 10.5% in the past year compared with the industry's 21.3% decline in the same period.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Dow currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Cameco Corporation (CCJ - Free Report) and Carpenter Technology Corporation (CRS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Hawkins, Inc. (HWKN - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised 12.5% upward in the past 60 days. The stock is up around 52.4% in a year.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $3.97 per share, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 25.9% in the past year.
The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied 54.6% in the past year.