Following U.S. President Donald Trump’s exit from the Paris climate agreement, Apple has offered to issue a corporate green bond worth $1 billion. Despite this, Apple (NASDAQ:AAPL) share remains unchanged on Tuesday through Wednesday following the 7% plunge caused by the downgrade from Mizuho analysts during the last two sessions.
Commitment To Clean Energy
The iPhone-maker first issued green bonds worth $1.5 million over a year ago in response to the Paris agreement last 2015 which was the largest issued by a company from the United States. Apple CEO Tim Cook was one of the company heads along with Microsoft (NASDAQ:MSFT) and Facebook (NASDAQ:FB) who directly plead President Trump to not leave the Paris climate agreement prior to his final decision.
According to Apple, the green bond symbolizes the commitment of businesses particularly those in the United States to the goals of the accord between 194 nations. The $1 billion green bonds will be issued as a sign of the company’s efforts to support and finance clean energy and environmental projects
Apple vice president of environment, policy, and social initiatives Lisa Jackson stated“Leadership from the business community is essential to address the threat of climate change and protect our shared planet.”
The company was able to support around 16 different renewable energy and recycling projects during its first bond offer and has been able to allocate an amount of $442 million during 2016. The company plans to use the proceeds of the bonds to help finance other environmental energy projects including renewable energy sources, efficiency and others.
Apple Stock Movement
The issuance of green bonds means that the company would not have to go into its massive cash reserves to fund and support clean energy projects. Despite this, the shares of the company remain unchanged at the $146.7 level. Apple shares dipped as early last week due to reports of an issue with the production of the next iPhone flagship. Shares of the company plunged by 7% after analysts from Mizuho downgraded Apple stock due to the ongoing market concern regarding the company’s sky-high stock prices.
According to the financial company, the current enthusiasm around Apple shares can lead to a sudden downturn anytime. Apple shares closed 2.39% on Monday pulling other major tech stocks with it. The stock was trading at around $159.99 on Thursday last week before plunging to as low as $142.51 on Monday. Apple currently has the largest market capitalization in the S&P 500 and is top three worldwide nest to Alibaba Group Holdings Ltd (NYSE:BABA) and Tesla (NASDAQ:TSLA). Apple shares are currently up by 27% this year due to the high iPhone 7 and 7 Plus demand in the middle of the impending release of the tenth anniversary iPhone this year.