American Express Eyes ESG Bond Market to Fund Eco-Friendly Cards Has mandated banks to arrange calls with ESG-minded invest

American Express Co., the country’s largest provider of small-business cards, is testing potential investor interest for its first-ever bond sale earmarked for environmental and social initiatives.

The credit-card provider has asked Morgan Stanley, Bank of America Corp, HSBC Holdings Plc and Wells Fargo & Co. to arrange a global sustainability fixed-income investor call on Tuesday exclusively focused on environmental, social and governance issues, according a person with knowledge of the matter. A dollar-denominated issuance may follow, which may include an inaugural sustainability notes offering, the person said.

Proceeds from the potential bond sale would fund eligible green and social projects, including the procurement and fabrication of recycled material for AmEx consumer and business cards, waste and recycling initiatives, green buildings and empowering diverse business suppliers and vendors like women and LGBTQ+, according to a second-party opinion issued by Moody’s ESG Solutions.

Companies and governments are selling ESG-linked debt at a record pace to help fund their sustainability goals. Global sales of green, social, sustainability and sustainability-linked bonds surpassed $1 trillion for the first time last year and underwriters of the debt are bracing for another surge this year