McDonald’s Biggest Franchisee Plans to Debut ESG-Linked Bonds

Arcos Dorados Holdings Inc., the world’s largest operator of McDonald’s restaurants, is planning to sell bonds tied to its sustainability goals for the first time.

The senior unsecured notes will be linked to reducing greenhouse gas emissions by 36% from restaurants and offices and 31% in the supply chain by 2030, according to a statement on Monday. The bonds will be issued by the Arcos Dorados B.V. subsidiary, the Buenos Aires-based company said.

Moody’s Investors Service assigned a Ba2 rating for the seven- to 10-year notes. Proceeds will fund a cash tender offer for about $351 million of Arcos ...