Glencore's deforestation exposure in the spotlight

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Glencore, one of the world's largest mining companies, was in the market on 27 August to print a EUR600mn 8yr bond, its third visit to capital markets this year. While the company is predominantly known for its mining operations, it also forms part of AFII's Deforestation Debt Universe, a list of significant fixed income issuers with substantial exposure to deforestation.

The transaction attracted c.EUR1.5bn of investor demand (book cover: 2.5x), with pricing tightening 30bps from IPTs to land at MS+110bps. Glencore now has an equivalent of c.USD28bn equiv. of bond debt outstanding across several currencies.

Glencore's deforestation exposure stems from its stake in grain handler Viterra, which merged with Bunge Global in 2025, leaving Glencore with a 16.4% holding in the enlarged company. This exposes Glencore to deforestation linked to palm oil, soy, and beef, while it has also been accused of causing deforestation directly, in Colombia and in the Amazon.

Separately, reports suggest Glencore is planning a secondary listing in Australia to access the country's large and growing pension fund pool. As this listing is not expected to raise new equity capital, Glencore may instead turn to bond markets to fund growth ambitions, giving fixed income investors a recurring opportunity to engage on deforestation risk.