Xylem Closes $1 Billion Inaugural Green Bond

• Proceeds will fund eligible projects under Green Finance Framework
• Further enhances strong liquidity position, adds flexibility at attractive rates
• Builds on sustainability track record and recognized sustainability leadership in sector

RYE BROOK, N.Y.--(BUSINESS WIRE)-- Xylem Inc. (NYSE: XYL), a leading global water technology company dedicated to solving the world’s most challenging water issues, today announced the successful closing of its inaugural green bond offering of $1 billion in senior unsecured notes. The offering, which received strong support in the market, consisted of $500 million of 1.950% senior notes due in January 2028 and $500 million of 2.250% senior notes due in January 2031.

The proceeds will fund green projects that help improve water accessibility, water affordability, and water systems resilience, in alignment with Xylem’s Green Finance Framework.

“Solving the world’s toughest water challenges already puts sustainability at the heart of our business, and this bond offering brings sustainability to the center of our funding strategy,” said Mark Rajkowski, Xylem’s Chief Financial Officer. “We’re very pleased by the market’s enthusiastic interest in the bond. It both expands liquidity at attractive rates and provides funding capacity for green projects that are important to our customers, employees, shareholders and communities.”

This is the second sustainability-driven financing completed by the Company, which previously executed an $800 million revolving credit facility with a sustainability-linked pricing mechanism in March 2019. The successful offering further enhances Xylem’s robust liquidity position, and maximizes flexibility in an evolving macro-economic environment.

The green bond offering builds on the strength of the Company’s sustainability track-record, and aligns with its ambitious 2025 sustainability goals, which include the commitment to save more than 16.5 billion cubic meters of water through the use of advanced technologies.

The eligible projects Xylem will invest in are further described in the Company’s Green Finance Framework and are in alignment with the United Nations Sustainable Development Goals. These eligible projects include eco-efficient- and/or circular economy-adapted products, production technologies and processes, and solutions that advance sustainable water and wastewater management, including communities’ resiliency against the impacts of climate change.

Given that the majority of Xylem’s technologies, products and solutions address these topics, the proceeds of the offering provide exceptional financing versatility.

“Technology is playing an increasingly important role in solving water issues and stewarding society’s shared water resources,” said Claudia Toussaint, Xylem’s General Counsel and Chief Sustainability Officer. “Xylem, with its long history of innovation, is applying the powerful capabilities of digital technology, integrated management and data analytics to make water systems more eco-efficient and sustainable. When we create more positive sustainability outcomes, we generate economic value while also creating value for society.”

Sustainalytics, a leading provider of ESG and corporate governance research and ratings, reviewed Xylem’s Green Finance Framework, and provided a Second Party Opinion which can be viewed here.

Xylem’s 2025 sustainability goals, which underscore Xylem’s commitment to sustainability, include:

• Save more than 16.5 billion cubic meters of water through the use of advanced technologies;
• Prevent over 7 billion cubic meters of polluted water from flooding communities or entering local waterways;
• Reduce the CO2 footprint associated with the water cycle by over 2.8 million metric tons
• Provide access to clean water and sanitation solutions for at least 20 million people living at the base of the global economic pyramid; and
• Use 100% renewable energy and 100% process water recycling at its major facilities.

View Xylem’s Green Finance Framework here.

View Xylem’s Sustainability Report, including the full list of its 2025 goals, here.

In addition to its annual Sustainability Report, Xylem will report annually on the allocation of the proceeds of this offering, and on the impact of the portfolio of eligible projects, until the proceeds of the Green Financing are fully allocated.

ING served as sole Green Structuring Advisor. For the offering of the notes, BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and ING Financial Markets LLC, served as joint active book-running managers. Wells Fargo Securities LLC served as passive book-runner.

About Xylem

Xylem (XYL) is a leading global water technology company committed to solving critical water and infrastructure challenges with technological innovation. Our more than 16,000 diverse employees delivered revenue of $5.25 billion in 2019. We are creating a more sustainable world by enabling our customers to optimize water and resource management, and helping communities in more than 150 countries become water-secure. Join us at www.xylem.com.

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Source: Xylem Inc.