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Photographer: David Paul Morris/Bloomberg Photographer: David Paul Morris/Bloomberg

Apple Inc. joined Europe’s booming market for green bonds with one of the largest-ever corporate issues of environmentally-friendly debt in the region.

The iPhone maker sold 2 billion euros ($2.2 billion) of six and 12-year bonds on Thursday, according to data compiled by Bloomberg. It will use proceeds to reduce its carbon footprint, use greener materials in its products and conserve resources.

The market for green bonds is growing as companies and governments raise funds to cut fossil fuel use, embracing the principles of The Paris Agreement on climate change. Global sales of the securities have already surpassed last year’s $135 billion record and Moody’s Investors Service has increased its forecast for issuance.

“ESG funds’ assets are growing and there is a generally benign environment for green bond issuance,” said Viktor Hjort, global head of credit strategy at BNP Paribas SA, referring to ethical investing in environmental, social and governance strategies. “With Apple in particular, there is the diversification aspect, as the green bond market has been historically dominated by utilities.”

Green Boom Apple adds to record year of green euro corporate bond supply Source: Data compiled by Bloomberg

Apple’s six-year bonds are yielding 15 basis points over mid-swaps while the 12-year securities carry a premium of 30 basis points. The offering is one of the largest on record in Europe’s corporate green bond market, based on data compiled by Bloomberg. French utility Engie SA printed 2.5 billion euros of green bonds in two tranches back in May 2014.

“By issuing an additional $2.2 billion in green bonds, we will accelerate our work to lower carbon emissions across our supply chain and beyond, building on our successful transition to 100% renewable energy,” said Lisa Jackson, vice president of environment, policy, and social initiatives at Cupertino, California-based Apple.

Apple has already raised $2.5 billion from previous sales of green bonds in U.S. dollars and has shown commitment to improving its environmental impact. Last year the company reached the goal of powering all its sites worldwide with clean energy.

Supply of green euro-denominated corporate bonds already exceeds 50 billion euros in 2019, towering above last year’s record of 32 billion euros, based on data compiled by Bloomberg.

— With assistance by Allan Lopez, and Nikolaj Gammeltoft